The trade bodies from all over the country, including small traders' organisations, under the banner of All Pakistan Anjuman-e-Tajiran, announced to observe shutter-down strike on August 1, 2015, (Saturday) against imposition of 0.3 percent withholding tax (WHT) on banking transactions by the federal government.
It is worth mentioning here that the govt had imposed an adjustable advance income tax at the rate of 0.6% of the amount of transactions on all banking instruments and other modes of transfer of funds through banks in the case of persons who do not file income tax returns in the budget 2015-2016.The govt has estimated to generate Rs 35 billion through this measure during the ongoing financial year 2015-2016.The govt has taken this step in a bid to broaden the tax base of the country by bringing non-taxpayers into the tax net.
The decision created panic among the traders. Traders' bodies, after failure of talks with the govt over the issue of controversial withholding tax on banking transactions, decided on Monday to continue their protest programme of countrywide strike on August 1. Pakistan Cotton Ginners Association (PCGA) has also announced to join the traders protest .Its Chairman Haji Hafeez Anwar and Vice Chairman Rao Sadaruddin said, "we are with business community against the levy of unjust withholding tax, Khawaja Muhammad Shafiq and other leaders announced to observe shutter-down strike on August 1, 2015 (Saturday) against imposition of 0.3 per cent withholding tax (WHT) on banking transactions by the federal govt. They said that talks with the government were fruitless, as we want withdrawal of withholding tax on the banking transactions.
Now, we will observe shutter-down strike throughout the country on Saturday," All Pakistan Anjuman-e-Tajiran President Khawaja Shafiq said, while talking to the media men here today. He further said that traders would not hold any further meeting with the govt over the issue of withholding tax as it was the last meeting. He alleged that Present regime was not serious to resolve the problems confronted by the traders. Instead it was employing delaying tactics and it was also developing disintegration, disunity among the business community.
We have rejected the government's proposal of constituting a new committee on the issue," Khawaja said. The sources said the govt side was of the opinion that the WHT on cash withdrawals and banking instruments could not be abolished completely as it was introduced to bring non-filers into the tax net. It will only affect the non-taxpayers, the govt team insisted but the business community's representatives rejected the argument.