Lahore, September 08, 2015 (PPI-OT): While supporting the stance of traders on the issue of withholding tax on banking transaction, the Lahore Chamber of Commerce and Industry has decided to observe strike today (September 09). In a statement issued here Tuesday, the LCCI President Ijaz A. Mumtaz said that the Lahore Chamber of Commerce and Industry has decided to go with the traders as they are backbone of the economy and playing role of a silent soldier for economic uplift of the country.
He said that unfortunately government has not shown any flexibility on the issue of withholding tax on banking transactions and forced business community to observe strike to register their protest. Ijaz A. Mumtaz said that government should withdraw this tax as it has been observed that tax collection machinery has no authentic data to specify difference between filers and non-filers.
He said that imposition of 0.3 percent withholding tax on banking transaction is a sheet injustice and against the government’s own policy of tax net expansion. He said that this is a double taxation which is bound to hit the trade and industry hard. He said that government should understand that protests and strikes always hit the economic activities hard therefore this tax should be withdrawn immediately in the larger interest of the economy.
He said that the Lahore Chamber of Commerce and Industry was with all the trade and industrial associations against this imposition of tax on bank transactions. He said that if tax on all bank transactions is imposed forcefully, it would not only hamper the trade and economic activities but would also tarnish the image of the government.
The LCCI President said that a number of trade and industrial associations have approached to the LCCI and informed that imposition of tax on all banking transactions has caused unrest and put the interests of business community on stake. He said that imposition of this tax would force business community to conduct its monetary transactions in cash that would promote the undocumented economy.
Ijaz A. Mumtaz said all business-related decisions should be taken in consultation with the stakeholders as being done in the developed countries. He urged the Federal Finance Minister to take all trade and industry related decision in consultation with the business community which is backbone of the economy. He said that the Lahore Chamber of Commerce and Industry advocates the broadening of tax net but all measures should be take in consultation with the stakeholders.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan