Traders announce to shut their business against WHT on Wednesday

Lahore: The stalemate between government and business community over imposition of withholding tax on bank transaction can transform into a major crisis any time, a business leader said on Tuesday.

The issues of bank tax must be resolved as it continue to hit banking industry while promoting parallel banking system which is adding to black economy, said President Anjuman Tajran Pakistan Khalid Pervaiz in a press conference here at Urdu Bazar .

Talking to media, Khalid Pervaiz said that we will not accept Withholding Tax at any cost and will show that traders are united on this issue throughout the country, the businessmen are preferring business through lockers and increasing using dollars which is not good for economy.

According to SBP deposits have been reduced by 5.2 percent in July while another report says that deposits have been hit by 38 percent since June while currency under circulation has increased by 158 percent.

At the occasion, trade representatives said that we are willing to pay taxes if rulers become an example in the first place and bring holy cows in the tax net.

A common man is paying over 19.5 percent tax on internet and mobile and 30 percent tax on power bills. Senior citizens are made to pay 10 percent WHT on saving schemes which is injustice.

They said that repressive taxation has hit poor out of which 40 percent are living below poverty line while rulers and elite continue to enjoy princely living without paying taxes.

Government is eyeing around 40 billion in revenue through WHT but traders will not pay a penny as tax unless the nobility and privileged do so, they vowed.