Negotiations between govt, traders over withholding tax successful
The traders will be filing tax returns on priority basis before the relaxation ends
ISLAMABAD (Dunya News) – The negotiations between the government and traders over withholding tax by banks have been successful and the tax rate has been lowered to 0.3% whereas the traders have agreed to pay the newly agreed upon tax rate.
According to details, the current fiscal year’s budget had imposed a tax of 0.6% on transactions of more than Rs 50,000, a move that was protested by traders from across the country.
In negotiations that lasted multiple days in Islamabad, the government and traders have agreed to a tax rate acceptable to both parties.
After the successful negotiations, the 0.6% tax has been reduced to 0.3% until September 30, 2015. The traders meanwhile will be filing tax returns on priority basis.
As per the spokesperson of Federal Board of Revenue (FBR), the notification of reduction in the tax rate will be issued soon.
