Summary Banks on Saturday had provided records of account holders to the FBR
LAHORE (Dunya News) – Federal Bureau of Revenue (FBR) Chairman Tariq Bajwa on Monday has said that Federal Finance Minister Ishaq Dar is scheduled to hold another round of talks with disengaged traders on October 14.
He gave out the news while addressing a Public Finance Management Conference in the provincial capital.
Bajwa said that the government is in touch with trader bodies to resolve persistent withholding tax issue. He said that the government had already cut the withholding tax from 0.6 percent to 0.3 percent to accommodate demands put forth by protesting bodies.
The FBR Chairman said that the imposition is on tax evaders and is an attempt to widen tax net. However, bank transactions have not seen any negative outcome of the new law, he added.
Bajwa said that the government is not even close to step down from its stance over withholding tax.
Auditor General of Pakistan (AGP) Rana Asad Ameen, while talking to the participants said that if the department functions with utmost sincerity then National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) would not have any responsibilities to shoulder. He said that there would be no need to forward cases to NAB and FIA if the AGP office starts pointing out irregularities.
Banks on Saturday had provided records of account holders to the FBR. Records included accounts’ data of importers, exporters and different companies.
The development came after the government, in the ongoing fiscal year imposed withholding tax on bank transactions be it through cheque, demand draft or pay order that is above Rs 50,000. Earlier, the withholding tax was limited to 0.6 percent however, on July 9 it was reduced to 0.3 percent following protests by traders.
Sources privy to the FBR said that the institution has resolved to take stern action against tax evaders. For the purpose, the department had summoned records of past two months, July and August until September 15.
Reports say that the FBR will finalise strategy and course-of-action after analyzing the given records within few days. 0.3 percent withholding tax will be increased to the previous figure of 0.6 percent starting from November 1.
Read: Traders observe strike in major cities in protest against withholding tax
On the other hand it is pertinent to mention here that despite government’s constant struggle, traders have refused to comply with the new order. Another round of talks between merchants and the government body failed. On October 8, talks between government and traders over withholding tax ended without any result. Both the parties remained firm on their stated stances and therefore, the stalemate still persists.
Earlier, federal minister Dar and Punjab Chief Minister (CM) Shahbaz Sharif held 3-hour-long talks with traders’ Khalid Butt group. However, both the parties stood firm on their stances and thus the talks ended without productive outcomes.
In what appeared to be a legitimate threat then, Khalid Butt group had warned the government of pledging support to Pakistan Tehreek-i-Insaf (PTI) in NA-122 by-election if the government did not withdraw withholding tax.
However, Ishaq Dar had directed the FBR officials to continue talks with the traders.
Withholding tax was rejected across te board as Islamabad Women s Chamber of Commerce and Industry (IWCCI) among other merchants unions concerned had expressed reservations since the imposition.
