Multan Chamber of Commerce and Industry (MCCI) stressed the need for widening tax base for bringing agriculturists and landlords into the tax net. President MCCI, Shahid Naseem Khokhar on Thursday said levying 3.5 percent withholding tax on traders and intermediaries of raw agriculture produce should also be rationalised.
He said traders, intermediaries of raw agriculture produce were exempted from withholding tax through SRO.586 (1) 1991 of June 31,1991, now they have to pay 3.5 percent withholding tax vide SRO 1161(1) 2010 December 31, 2010. He was of the view that tax should be levied on the commission earned instead of levying it on the total trade. "The country is currently experiencing high inflation and impact of imposition of 3.5 percent tax on gross trade would further increase the prices of many agricultural products," he maintained.