KARACHI: Chairman Awami Himayat Tehreek Pakistan, Moulvi Iqbal Haider and General Secretary Amjad Ali Narejo on Monday filed a petition in the Sindh High Court (SHC) seeking recall the notification of withholding tax on bank transactions.
The petitioner named Federation of Pakistan, Ministry of Finance, Chairman Federal Board of Revenue (FBR) and governor State Bank of Pakistan as respondents.
They challenged the 0.6% withholding tax on each banking transaction of over Rs 50,000 and declared it unjust, unfair and inviolate of articles 4, 5, 9, 14, 16, 18, 25 and 77 of the constitution of Islamic Republic of Pakistan. The government instead of reducing its lavish expenses has imposed double tax on consumer.
The petitioners submitted that after imposition of double tax, traders decided to withdraw their savings from banks as mark of protest and declared it exorbitant and unjustified move by the government. According to the petitioners, traders claimed that they had lost millions of rupees over the past couples of week on bank transactions of over Rs 50,000 at the rate of 0.6%.
The petitioner pleaded the court to set-aside the withholding tax from. They requested the court to restrain the respondents from demanding from 0.3percent to 0.6% as withholding tax on banking transaction till the final decision of the court.