WHT on bank transactions: over 50 trade bodies decide to go on strike on August 1

29 Jul, 2015

More than fifty trade bodies of Industrial city have announced to join the shutter down strike on August 1 and announced that all cloth markets and all business and trade Centres would be closed as a mark of protest against wide scale taxation in the country including the 0.3 percent withholding tax on bank transactions.
The leaders of the Supreme Council of Anjuman-e-Tajran Faisalabad and City Cloth Board have announced that a protest rally will also be taken out on August 1st and a hunger strike camp to be established. On this occasion, PML-N trade group also announced to join the strike and demanded that wide scale taxation should be withdrawn in public interest immediately.
Addressing the meeting, Haji Muhammad Aslam Bhalli, Muhammad Amin But, Muhammad yousaf Moti, Abbas Haider Sheikh, Mirza Shafique Ahmad, Hafiz Mohammad Shafi, Choudhry Ghulam Sarwar and Shahbaz Gull Batt said that the Levy of withholding tax on bank transactions would prove counter productive as the non-filers would resort to cash business and black money market will grow, they apprehended.
Further more, the business turnover and volume of trade will be restricted, negatively impacting the economic activity and national economy, they added. Trade leaders and businessmen also pointed out that the textile industry, including Power looms and Sizing sector will also suffer as the suppliers would demand cash payments thereby defeating the documentation objective. They said that the government had already levied so many new taxes and enhancing the rate of withholding tax, which would break the back of business and trade sector. They also pointed out that with increase in cash transactions the sales tax revenue would also be negatively affected as the business transaction would not be recorded and people would find it convenient to evade sales tax as well as income tax. The government revenue would decrease and economy would suffer, they maintained.
Speakers urged the government to immediately withdraw the 0.3 percent withholding tax on banking transactions and help restore normal business activity in the country for growth and progress of economy.
They warmed that in case of no action by the government the resentment amongst the business community and people would grow and they would come out on streets creating law and order situation. The government should reduce its extra ordinary expenses and wide scale taxation, which was hidden at the time of budget and now coming out one by one just like internet and mobile business etc should be withdrawn immediately.

Read Comments