Trade: (Business leader dubs bank tax as irrational, fiscal terrorism)

ISLAMABAD: Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt on Sunday said withholding tax (WHT) on bank transactions will never be acceptable to majority of the businessmen which are dubbing it as illogical and fiscal terrorism.

WHT is inconsistent with the ground realities therefore it must be reviewed and made acceptable as it is not being practiced anywhere in the world in the current rough form, he said.

He said traders would be left with no option but to accept bank tax if it is slightly modified and influential tax evaders as well as major defaulters are taken to task before squeezing commoners and middle-class businessmen.

He said tax compliance in Pakistan will remain one of the lowest in the world unless the ratio of direct taxes in increased from the current 25 percent while reliance on withholding agents is reduced.

Flawed taxation has benefitted nobility and continue to punish poor which has pushed million below the poverty line fanning social problems and militancy.

He said that SRO culture which is against the clause 77 of the constitution is blocking development while absence of any major political party which can raise voice against tax thefts, merciless wastage of national resources, promotion of state aristocracy and social justice which is unfortunate.

He said Pakistan will never prosper unless just justification of wealth is ensured through a justified tax system and elite start paying their share in the national development.