Dr Mirza Ikhtiar Baig, chairman, standing committee on banking, credit and finance of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has requested Finance Minister Shaukat Aziz not to levy 10 percent withholding tax on Bahbood Saving Certificates (BSCs).
He appreciated the new saving scheme launched by National Savings for senior citizens, widows and pensioners at the rate of 10.08 percent per annum through Bahbood Saving Certificates.
Since the rate of profit on saving schemes has decreased drastically thus the investment in saving schemes has dropped by 94 percent during July - November 2003 as compared to the same period of fiscal 2001-02. During first five months of the fiscal 2001-02, there was investment of Rs 32.8 billion in the National Saving Schemes as compared to investment of Rs 2 billion only during the same period of fiscal 2003-04.
Baig urged Shaukat Aziz to exempt levy of withholding tax on profit of Bahbood Saving Certificates which is a very good scheme for senior citizens, widows and pensioners.
He also requested him to include retired and disabled persons even below 60 years of age in the new scheme.
The exemption of 10 percent withholding tax on Bahbood Saving Certificates gives relief to the most deserving poor senior citizens, widows, pensioners, retired and disabled persons, he added.
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