Tax on transactions: Dar ducks question on WHT collection

Says information will be submitted after figures are finalised

ISLAMABAD: Finance Minister Ishaq Dar fobbed off a question about the amount collected by charging 0.3 per cent withholding tax on banking transactions with a pledge that the information would be shared as soon as the figures are finalised.

The question was raised Balochistan National Party-Awami Senator Kalsoom Parveen. Earlier in July, the federal government decided to impose a withholding tax of 0.6 per cent on banking transactions of over Rs50,000. The decision sparked protests across the country and incensed traders held demonstrations, claiming that the levy was likely to adversely affect their businesses.

Later, the government and business community reached an agreement, under which, traders agreed to be brought within the tax net in return for a 0.3 per cent reduction in the rate. It was unanimously decided the government will have the withholding tax by September 30.

According to available date, the government has collected Rs5.2 billion under this head from July through September. However, Dar deflected the question about the exact amount collected.

Meanwhile, lawmakers seemed hopeful of getting a response from the government in due course of time. Speaking to The Express Tribune, PPP Senator Saeed Ghani said, “The government has not replied yet; so we should wait for their response but the banking business has been definitely affected.”

Ghani also highlighted the issue of income tax from agriculture sector collected by provincial governments, of which there is no record available with the FBR.

“There are no filers in the FBR for any transaction from the bank. They are more affected,” he said, reiterating that the IMF has been said to further enhancing commissions.

 

Published in The Express Tribune, November 15^th, 2015.