LCCI urges Govt. to withdraw withholding tax immediately

Lahore: The Lahore Chamber of Commerce & Industry Wednesday termed the large-scale strike against withholding tax on bank transactions an eye-opener for the policy makers and demanded of the government withdraw this unjustified tax immediately.

In a statement issued here, the LCCI Vice President Syed Mahmood Ghaznavi said that one-day strike has caused loss of billion rupees to the national economy and situation would be further aggravated if government doesn’t withdraw this tax immediately.

Syed Mahmood Ghaznavi said that strike would give a big blow to the national economy that is already facing various internal and external challenges.

He said that at present when we are talking to strengthen the economy, strike would reverse the government’s efforts aimed at economic revival of the country.

“Strike of traders would not only cause hardship to the businesses but government would also be the ultimate loser as far as revenue collection is concerned”, the LCCI Vice president added.

Syed Mahmood Ghaznavi said that strike would virtually bring the trade and economy activities to a halt that would not only hit the exports hard but the industrial wheel would be stopped due to non availability of imported raw material.

He said that government would have to solve the issue through negotiation to deter the traders from more strikes. He said that the country is well on the way of economic revival and not in a position to afford strikes of the traders who are backbone of the economy.

The LCCI Vice President said that results of forceful implementation of any law are always bad therefore government should take business community on board and find out a solution acceptable for all stakeholders.

He though expansion of tax net is need of the hour but government would have to bring the untaxed sectors into the tax net. He said that measures like imposition of withholding tax on bank transactions would not be doing any service to the economy as businessmen have already started to withdraw their capital from the banks and using parallel resources.

He said all business-related decisions should be taken in consultation with the stakeholders as being done in the developed countries.