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Pakistan govt, traders reach deal on withholding tax

Islamabad - The government and business community have struck an agreement to reduce by half the withholding tax on banking transactions to 0.3 per cent from 0.6 per cent till September by which time the traders will file tax return to be exempted from the tax.
Both sides termed the accord a 'win-win' situation for all concerned though some organizations rejected the deal as a device to bring the community under tax net. "The government has agreed to reduce the withholding tax rate on banking transactions to 0.3 per cent for the next three months," announced Finance Minister Ishaq Dar after long parleys with representatives of traders and industrialists here on Thursday.
In the aftermath of the imposition of 0.6 per cent withholding tax, the trading and business community had threatened a countrywide shutter down strike but now this threat has been averted after successful talks between the two sides.
news@khaleejtimes.com

• Pakistan