How unfortunate it is that the government and protesting traders are still struggling to reach a deal over imposition of withholding tax on banking transactions. The business community appears to be divided over the issue. A large number of traders' bodies have decided to go on scheduled August 1 strike. However, there are also a good number of such bodies that have decided to cooperate with the government with a view to contributing to government efforts aimed at documenting economy.
They have, therefore, welcomed the government decision to form three committees ie, "Communication Committee", "Income tax Committee", and "Sales Tax Committee" to facilitate business community. The government must make it clear to the protesting traders that nothing will lead to withdrawal of tax on banking instruments. It is better to implement a strategy aimed at broadening the tax base as fast as it can.
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