Some banks are taking the benefit of the prevailing confused situation on WHT : FPCCI

Lahore: Businessman Panel of the FPCCI on Friday said decision to impose withholding tax on bank transactions is unwise at best as it is against the rights of banked population and violation of tax principles.

Government should not punish masses, business community, widows, pensioners and other vulnerable for the failure of FBR to broaden tax base to augment income, it said.

The decision termed as extortion by majority of traders would supplement underground economy, contract documented sector, said central leader of the Businessman Panel and former vice president FPCCI Khurram Sayeed.

Speaking to the business community, he said that income and consumption is taxed around the world but here government has found a novel way to milk masses which is not acceptable.

He noted that some banks are taking the benefit of the prevailing confused situation to get undue advantage which is illegal as well as immoral.

WHT on bank transactions will in no way bring rich and super rich in the tax net and will not promote documentation of the economy, he noted.