FBR urged to exempt WHT on mutual business dealing

The Chairman Hyderabad SITE Association of Trade and Industry Muhammad Shahid Kaimkhani demanded the Federal Board of Revenue to exempt withholding tax on mutual business dealing of taxpayers. In a statement here on Monday, he said that such exemption has already granted by the banks to taxpayers and if the FBR accepted this demanded, it would ultimately encourage the non filers to enter into the tax net.
He said that due to withholding tax, the cost of production is being increased and the traders, businessmen and industrialists are facing difficulties to carry out their business activities in smooth direction. Such practice is also creating bad impact on the economic cycle of the country; he said and added that the business community could not save extra income to reinvest in the business, if they paid withholding tax to FBR.
The business community is now reluctant to borrow loans from banks due to high mark-up are resulting their business activities under threat of financial constraints, he said and added that continuation of this practice would badly affect the industrial activities of the country. The Chairman HSATI appealed to Prime Minister Imran Khan and Chairman FBR Shabbar Zaidi to realize the issue and grant exemption of withholding tax on mutual business dealings so that the business community could be able to ensure maximum investment for development of economy of the country.