ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) on Thursday said any upward revision in the withholding tax on bank transaction will trigger another crisis; therefore, it is unacceptable.
The stand-off between government and business community over imposition of over bank tax can result in a major crisis any time, said Atif Ikram Sheikh, President ICCI in a statement. He said that the issues must be resolved as it continue to hit banking industry while promoting parallel banking system which is adding to black economy.
Sheikh said that businessmen are preferring business through lockers and increasing using dollars which is not good for economy. A common man is paying over 15 percent tax on Internet and mobile and 30 percent tax on power bills. Senior citizens are made to pay 10 percent WHT on saving schemes which is injustice.
He said that repressive taxation has hit poor out of which 40 percent are living below poverty line while rulers and elite continue to enjoy princely living without paying taxes. Traders are of the view that government is eyeing around 40 billion in revenue through WHT but they will not pay a penny as unjustified tax unless the nobility and privileged do so, he informed.