State Bank says deposits rose 12 percent despite withholding tax

State Bank says deposits rose 12 percent despite withholding tax
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Summary Deposits have exceeded a total of Rs 9,000 billion, show latest statistics

ISLAMABAD (Dunya News) – State Bank of Pakistan (SBP) on Saturday has stated that deposits have risen at least 12 percent in the past year despite withholding tax imposition.

Latest statistics show that in the past ten years, deposits have exceeded a total of Rs 9,000 billion. Earlier, the total stood at Rs 8,200 billion in October 2014.

READ ALSO: Traders strike countrywide against 0.3% withholding tax

The banks stated that rumours of losses since the withholding tax was imposed are baseless. Moreover, provision of loans by banks has increased by at least four percent while investment by 27 percent in past one year.

Economic experts have said that banks are inclined towards providing loans to the government. That is why, they said the banks are interested in investing in Pakistan Investment Bonds and T-bills.

READ ALSO: Major markets observed strike to protest against withholding tax

Earlier in September, the government and traders  bodies held a series of unsuccessful talks. Traders had refused to comply with the imposition. The government has imposed a withhoding tax of at least 0.6 percent on every bank transaction above Rs 50,000.

READ ALSO: Traders agreed on implementation of withholding tax: Ishaq Dar 

However, after traders took to the streets against the government demanding withdrawal of the order, the government extended the 0.3 percent leniency.

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