ISLAMABAD: The government has decided to reduce the withholding tax on bank transactions from 0.6 percent to 0.3 percent.
The decision was taken during conclusive dialogue between the government and trader representatives in Islamabad on Thursday.
The withholding tax was announced in the budget 2015-16 on banking transactions for the non-filers.
Later talking to media, Finance Minister Ishaq Dar said that the reduction in the withholding tax will be applicable till 30th September this year.
He said the traders have agreed to file tax returns on priority basis by 30th September. He said after that time 0.6 percent withholding tax will be applicable on the bank transactions for the non-filers.
However, All Karachi Tajir Ittehad (AKTI) rejected the meeting’s decision, saying any kind of tax on bank transactions is unacceptable.
“If the government would not restore the previous method of bank transactions, we would give a strike call,” Chairman AKTI Atiq Mir said. –Samaa