FBR asked to take banks no­tice

The Pak Banker - - COMPANIES/BOSS - Ja­hangir Hayat

Pro­gres­sive Group in the La­hore Cham­ber of Com­merce and In­dus­try (LCCI) has urged the Fi­nance Min­istry and the Fed­eral Board of Rev­enue (FBR) to take no­tice of the Banks de­duct­ing 0.3 per cent with­hold­ing tax from even the fil- ers de­spite clear in­struc­tions is­sued by the gov­ern­ment and the FBR many a times.

In a state­ment is­sued here on Fri­day, Pro­gres­sive Group's Pres­i­dent Khalid Us­man and Deputy Sec­re­tary Ejaz Tan­veer said that they were re­ceiv­ing com­plaints from dif­fer­ent traders that the Banks were even de­duct­ing the with­hold­ing tax from the fil­ers.

Es­pe­cially those traders and busi­ness­men are be­com­ing sub­ject to this in­jus­tice those have NTN num­ber in their name but not against their com­pany but are reg­u­lar in fil­ing their in­come tax re­turn men­tion­ing all their in­come.

They said that the Banks were ad­vis­ing such per­sons on protest that they should ap­ply for re­funds at the end of the fi­nan­cial year.

How­ever, ev­ery­body in Pak­istan know the fact that its al­most next to im­pos­si­ble to get re­funds from the FBR. Stuck up re­funds also cre­ate liq­uid­ity prob­lem for the busi­ness­men es­pe­cially small busi­ness­men.

Pro­gres­sive Group lead­ers said that no­body was against pay­ing the taxes but the FBR in­stead of re­ly­ing on in­di­rect taxes should broaden the tax net. Con­sti­tu­tion of com­mit­tees by the Fed­eral Board of Rev­enue (FBR) in the name of fa­cil­i­tat­ing the traders will not work.

"The gov­ern­ment should pay at­ten­tion to the real cause of con­cern. This kind of in­di­rect tax will have a mul­ti­plied im­pact on the trans­ac­tions.

It is ham­per­ing the bank­ing trans­ac­tions and us­ing for­mal money trans­ac­tions chan­nels," they added.

They said this tax will not only de­crease eco­nomic ac­tiv­ity but also en­cour­age peo­ple to han­dle all their trans­ac­tions in cash to avoid taxes. It will also ham­per the gov­ern­ment ef­forts of ex­pand­ing the tax net.

They said that this tax which would dis­cour­age use of bank­ing chan­nels also ham­per the busi­ness of largest ser­vice sec­tor i.e. bank­ing sec­tor thus lead­ing to loss of rev­enue to the na­tional ex­che­quer which is col­lected on bank­ing ser­vices.

They said the gov­ern­ment should un­der­stand that protests and strikes al­ways hit the eco­nomic ac­tiv­i­ties hard there­fore this tax should be with­drawn im­me­di­ately in the larger in­ter­est of the econ­omy. They said their group is with all the trade and in­dus­trial as­so­ci­a­tions against this im­po­si­tion of tax on bank trans­ac­tions.

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