ISLAMABAD: The issue over which lot of hue and cry was heard has finally been settled and government has announced to reduce the withholding tax from 0.6 percent to 0.3 percent for three months.
The dialogues were held between Finance Minister, Ishaq Dar and the members of trade union regarding the imposition of withholding tax on bank transaction in which the traders demanded government to suspend the new withholding tax that was of 0.6 percent.
Protests and rallies were held all over the country by traders over the imposition of this new tax and violent reaction was observed and traders straight forwardly rejected the tax and plainly declines to pay the tax.
The withholding tax was announced in the budget 2015-16 on banking transactions for the non-filers.
Later talking to media, Ishaq Dar told that the reduction in the withholding tax will be applicable till 30th September this year. “The traders have agreed to file tax returns on priority basis by 30th September and after that the withholding tax will be applicable on the bank transactions for the non-filers”, he added.
However, most of the trade unions of Karachi, Lahore, Faisalabad and Multan have rejected the relaxation by the government to waive off 0.3 percent tax for three months. They have demanded to completely remove the withholding tax on bank transactions.