The Union of Small and Medium Enterprises (Unisame) has questioned the wisdom behind the imposition of withholding tax of 0.1 percent on the cash withdrawals of Rs 25,000 and above. Unisame President Zulfikar Thaver said the small businessmen usually draw such amounts to purchase different kinds of requirements and the sellers are not comfortable with cheques for lack or no trust and even credit cards are not accepted by the sellers.
The SME is compelled to carry cash for shopping to buy TV, refrigerator, appliances, cell phones, and other such items. Even all hospitals don't accept cheques and credit cards.
The SME would be liable to pay WT every time cash is withdrawn.
Unisame committee members urged the prime minister, who is an experienced seasoned banker, to drop this proposal and see things from the angle of an economist and avoid this hardship for the small businessmen.-PR
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