Articles and Letters

Articles  Letters

Tax on bank transactions and status of G - B

Published on October 04, 2015Withholding is an act of deductions or collections of tax at source according to Income Tax Ordinance, which has generally been in the nature of an advance tax payment. It is an effective mechanism and important/timely source of revenue. Their contribution is about 41% of total direct tax revenues. Increase from Rs 5 billion in 1991 to above Rs 169 billion in 2007 speaks of exponential growth and consequential heavy reliance on withholding taxes in Pakistan. Under the repealed Income Tax Act, 1922, tax was deducted from two main sources of income; namely, salaries and interest on securities. Over the period of time, Withholding Tax net was extended, by steadily introducing different Provisions in the Tax Laws. The repealed Income Tax Ordinance, 1979, brought in all the provisions of the Income Tax Act, 1922. However, in the 1990s, withholding tax net was expanded extensively by providing for withholding tax on a wider variety of transactions and making most of them presumptive. Provisions of the Income Tax Ordinance, 2001, are more or less the same, except for a few changes and additions. Important withholding provisions relate to salary, imports, exports, commission and brokerage, dividend, contracts, cash withdrawals, profit on debt, utilities, vehicles tax, stock exchange-related provisions and non-residents, etc, with varying rates.Read full story

Troubles with US - trained rebels a familiar problem

Published on October 04, 2015The new band of rebel recruits was supposed to prove the United States could train moderate Syrian fighters to defeat the jihadists in the war-ravaged nation. But soon after returning to Syria, the American-backed fighters handed over a quarter of their ammunition and other equipment to a local al Qaeda affiliate, known as the Al-Nusra Front.Read full story

Disease, injury stalking migrants on long road to Europe

Published on October 04, 2015As volunteer doctors, they are accustomed to treating injuries and disease outbreaks in conflict zones - but now duty calls on Greek soil. In the mobile Medecins du Monde mobile unit on the island of Lesbos, attending to thousands of refugees and migrants landing from neighbouring Turkey is a round-the-clock affair. Aching muscles, lower body injuries, pulmonary infections - with around 350 patients a day, there is little time to dwell on specific patients.Read full story