Chawla irked by withholding tax deduction

Sindh feels amount taken by centre more than what it should be

KARACHI: Expressing its dismay over the amount of withholding tax being collected from consumers, Sindh’s bureaucracy is demanding the centre to return the amount they have deducted under the head so far.

As part of its move to increase tax collection as well as force people inside the tax net, the federal government has imposed withholding tax on certain transactions, including motor vehicle tax and registration. The amount is collected from consumers by various agents on behalf of the federal government and then passed onto the centre.

On Tuesday, however, eight ministers and special assistants to the Sindh chief minister said the amount, which has shot up to Rs6.13 billion, is being taken away “without any prior consultation with the provincial government and is far more than what was due”.

Addressing a press conference, Special assistant to Sindh chief minister, Mukesh Kumar Chawla, said that all cars registered in the province after the year 1960 have been imposed with a tax. The amount of withholding tax deducted is also more than what it should be, added Chawla.

“To avert any spiral situation, the centre should halt its discriminatory policies against Sindh,” added works and services minister Imdad Pitafi.

Published in The Express Tribune, August 17^th, 2016.

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