Karachi, September 07, 2015 (PPI-OT):The stalemate between government and business community over imposition of withholding tax on bank transaction can transform into a major crisis any time, a business leader said Monday. The issues of bank tax must be resolved as it continues to hit banking industry while promoting parallel banking system which is adding to black economy, said President Pakistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister Mian Zahid Hussain.
Talking to representatives of traders, he said that many in the business community have printed receipt book matching cheque book which are being used for transactions which will flourish parallel banking. Moreover, Mian Zahid Hussain said that businessmen are preferring business through lockers and increasing using dollars which is not good for economy.
According to SBP deposits have been reduced by 5.2 percent in July while another report says that deposits have been hit by 38 percent since June while currency under circulation has increased by 158 percent. At the occasion, trade representatives said that we are willing to pay taxes if rulers become an example in the first place and bring holy cows in the tax net.
A common man is paying over 15 percent tax on internet and mobile and 30 percent tax on power bills. Senior citizens are made to pay 10 percent WHT on saving schemes which is injustice. They said that repressive taxation has hit poor out of which 40 percent are living below poverty line while rulers and elite continue to enjoy princely living without paying taxes. Government is eyeing around 40 billion in revenue through WHTY but traders will not pay a penny as tax unless the nobility and privileged do so, they vowed.
For more information, contact:
Mian Zahid Hussain,
Pakistan Businessmen and Intellectuals Forum (PBIF)