Summary The ECC's meeting today was called to take a decision before expiration date of the order
ISLAMABAD (Dunya News) – The Economic Coordination Committee (ECC) on Thursday has extended 0.3 percent, discounted withholding tax imposition until November 7 on bank transactions above Rs 50,000.
Federal Finance Minister Ishaq Dar chaired the meeting to decide whether 0.3 percent, discounted withholding tax should be extended or not. The meeting also reviewed imposition of 10 percent duty tax on imported cotton yarn.
The government had earlier imposed 0.6 percent withholding tax on all kinds of bank transactions above Rs 50,000. However, the tax was cut to 0.3 percent until October 30 which is about to expire on Friday.
The ECC’s meeting today was called to take a decision before expiration date.
On the other hand, the ECC has approved supply of at least 64,000 metric tons wheat to the United Nations (UN) World Food Programme for Temporary Displaced Persons of FATA and Khyber Pakhtunkhwa.
The Committee also approved the issuance of sovereign guarantee against financing facility of 18 billion rupees for Thar- Matyari Transmission Line project.
READ ALSO: Traders agreed on implementation of withholding tax: Ishaq Dar
Earlier, traders had taken to streets against the government s order. They had demanded the incumbent government to withdraw the tax increase. However, Dar had said that the tax would not be withdrawn while traders leader Ajmal Baloch had said that parties were close to an agreement.
In a press conference, All Pakistan Traders Association chief, Khalid Pervez said that he rejects withholding tax completely.
He had said that he met Dar upon the request of Chief Minister (CM) Punjab Shahbaz Sharif but the government tried to strike a bargain with them. He said that since Dar has decided not to withdraw the withholding tax, there will be no changes in the traders’ stance.
READ MORE: Withholding tax: Govt-traders talks end, stalemate persists
