There was a big rush at all the bank branches in the city of Karachi when they reopened for business on Saturday after observing July, 1 as Bank Holiday. Since the working hours, being a Saturday, were short by one hour, the crowds at the commercial bank branches were quite big. The cash withdrawals were also prominent.
All commercial banks branches have started deducting 0.1 percent withholding tax, as levied in the budget for 2005-06 by the government on cheques valued Rs 25,000 and above when drawn in cash. However, in many bank branches the instructions in this connection reached only in the morning and there was some ambiguity on the subject whether this tax should be charged from the drawee or the drawer.
The ambiguity, subsequently, got cleared in most bank branches by the afternoon.
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