Govt may abolish tax on cash withdrawal from banks

KCCI delegation gives proposals for upcoming mini-budget

KARACHI: Minister of State for Revenue Hammad Azhar has agreed to abolish the withholding tax (WHT) on cash withdrawal from bank accounts for the filers of tax returns with a view to promoting ease of doing business and enhance bank deposits.

Besides extending assurances to commercial importers that the final tax regime (FTR) would be restored in the upcoming finance bill, the minister reiterated that the sales tax and WHT on the sale of used capital goods by manufacturers would be withdrawn.

This was stated by Karachi Chamber of Commerce and Industry (KCCI) Acting President Khurram Shahzad while recalling a meeting of a KCCI delegation with the state minister in Islamabad.

He shared that KCCI’s recommendations for the forthcoming mini-budget were discussed extensively and the minister extended assurances that the suggestions would be considered. “The minister acknowledged the need to withdraw the notices of mandatory audits issued under Section 214D to the late filers of returns,” Shahzad added.



“It was decided that the powers under Sections 37, 37A, 37B, 38, 40, 40B of Sales Tax Act will be exercised only after prior approval from the officers above the grade of an FBR member.”

He said Finance Minister Asad Umar had agreed earlier that tax payments under the amnesty scheme, received after due date owing to technical reasons, would be accepted and the declaration would be considered valid.  “The state minister has committed to including this proposal in the mini-budget,” he claimed.

Moreover, the acting KCCI president outlined, it was resolved to withdraw the exemption provided to large import houses under Section 148 I - Sub-section 7, Sub-clause D of the Income Tax Ordinance, which exempted 6% WHT and other levies.

Published in The Express Tribune, January 19^th, 2019.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.