Withholding tax on bank transactions: Govt. urged to resolve issue through negotiations

Lahore: The Lahore Chamber of Commerce & Industry Tuesday feared that calls for strikes would cause undue damage to the economic activities and hit the government efforts aimed at progress and prosperity of the country.

In a statement issued here, the LCCI President Ijaz A. Mumtaz 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.

Ijaz A. Mumtaz 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 said that 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.

Ijaz A. Mumtaz said that though formation of a committee and cut in withholding tax is a step in right direction but business community is yet not satisfied and want complete withdrawal of withholding tax.

He said that the Lahore Chamber of Commerce and Industry is with all the trade and industry associations against this imposition of tax on bank transactions.

He said that if tax on all bank transactions is imposed forcefully, it would not only hamper the trade and economic activities but would also tarnish the image of the government.

The LCCI President said that a number of trade & industrial associations have approached to the LCCI and informed that imposition of tax on all banking transactions has caused unrest and put the interests of business community on stake.

He said that imposition of this tax would force business community to conduct its monetary transactions in cash that would promote the undocumented economy.

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

He said that Federal Finance Minister would be asked to take all trade and industry related decisions in consultation with the business community which is backbone of the economy.

Ijaz A. Mumtaz said that the Lahore Chamber of Commerce & Industry advocates the broadening of tax net but all measures should be taken in consultation with the stakeholders.

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