Tag Archives: withholding tax

LCCI Terms Withholding Tax an “Economic Intimidation”

LCCI Terms Withholding Tax an “Economic Intimidation”


admin | January 22, 2018 | category: Business

LCCI Terms Withholding Tax an “Economic Intimidation”. The Lahore Chamber of Commerce & Industry has termed the withholding tax on banking transaction “economic intimidation” for the business community and called for its immediate withdrawal.

The LCCI President Malik Tahir Javaid, Senior Vice President Khawaja Khawar Rashid and Vice President Zeshan Khalil said that withholding tax on banking transactions is doing more harm than good and continuously affecting the business atmosphere in the country. “Issue of withholding tax is top of the list in the other miseries like disparity in taxation system, dual taxation, high input cost and delay in refunds that must be resolved according to the demand of the business community, the LCCI office-bearers said while talking to a delegation of
All Pakistan anjuman-e- Tajran, led by Khalid Pervez.

They said that business community has rejected withholding tax on banking transactions from the first day but concerned authorities are not ready to realize the ground realities.  They said that though expansion of tax net is need of the hour but  government would have to find out new ways to bring the untaxed sectors into the tax net.

They said that measures like imposition of withholding tax on bank transactions are not doing any service to the economy as it has been observed that tax collection machinery has no authentic data to specify difference between filers and non-filers.

They said that tax on all bank transactions has been imposed forcefully, that is not only hampering the trade and economic activities but is also tarnishing the soft image of the government. They said that a number of  trade & 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.

They said  that imposition of this tax has forced business community to conduct its monetary transactions in cash that is promoting undocumented economy. The LCCI office-beares hoped that withholding tax on banking  transactions will be withdrawn immediately in the larger interest of the industry, trade and economy.

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FPCCI Asks PM to Mediate on Withholding Tax on Bank Transactions

FPCCI Asks PM to Mediate on Withholding Tax on Bank Transactions


Ram zi | January 10, 2018 | category: Banking

FPCCI asks PM to mediate on withholding tax on bank transaction.The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed grave concern over FBR’s inaction on section 38-B and withholding tax on bank transactions and urged the prime minister to intervene into the matter.

The FPCCI Vice President & Regional Chairman Ch.Arfan Yousaf said that challenges to economy would swell if issues of discretionary powers and withholding tax on bank transactions would not be resolved. Ch.Arfan Yousaf expressed these views while talking to a delegation of Pakistan Computers Association (PCA) at the FPCCI Regional Office Lahore.

“Being a major source of revenue for the government, business community deserves honor while withholding tax should be removed as it is unjustified and double taxation”, the FPCCI Regional Chairman said and added that indirect taxes are being removed gradually throughout the world. However in Pakistan these are contributing around 60 percent to the revenue despite the fact that expenses on this practice are higher than the collections.

He said that section 38-B is being misused badly against the business community that is one of the major reasons of low tax-to-GDP ratio. He said that exports have been already declined and trade deficit is touching the sky while such issues are adding fuel to the fire. He said that FBR should stop harassing filers as it discourages businesses to come into the tax net. Registered businesses are required to comply with various departments involving a lot of financial and time resources whereas unregistered businesses are free from all such hassles.

He said that there are 3.5 million registered taxpayers out of which only around 1 million file their tax returns. Government should take all the measures to ensure filing of returns by remaining 2.5 million individuals and businesses. The government claims that it always acts as a facilitator but in this scenario it is entirely otherwise.

Ch.Arfan said that attaching bank accounts for recovery of outstanding dues is hampering business growth and tarnishing the soft image of the government. He said that bank accounts should not be attached without prior notice to the taxpayer and after seeking approval in writing of Commissioner in the light of reply submitted by the taxpayer. The recovery should be after the decision of the Tribunal and not before that.

He said that unfortunately if the FBR initiates a recovery case, the taxpayer is not allowed to defend as FBR itself is the complainant and a judge. Instead of focusing on controlling under-invoicing, curbing smuggling and expanding the tax net, the FBR seems to be inclined to pressurize registered taxpayers who are already suffering due to high rate of sales tax, income tax and Custom duties by creating fictitious cases for recovery of outstanding dues to meet revenue target.

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Telecom Sector Evading Billions of Rupees Tax

Telecom Sector Evading Billions of Rupees Tax


Sumera Saeed | December 29, 2017 | category: News

Telecom Sector Evading Billions of Rupees Tax.A scam of billions of rupee avoiding payment of withholding tax being by the Telecom sector unearthed when on Friday Senate Standing Committee on Finance was informed that only one telecom company was found involved in evasion of withholding tax of rupees 267 million in just three months in FATA alone.

The Standing Committee which met here at the Parliament House under the Chairmanship of Senator Saleem Mandviwala was informed by the officials of the FBR that mobile service mproviser Telenor was found in evasion of withholding tax of rupees 267 million in FATA and PATA areas only in three months.

The Committee was informed that withholding tax is being collected from the consumers but it was not being deposited with the FBR. The committee was informed that the FBR has started receiving data from the telecom sector companies and when it was checked, the tax evasion was traced. As the Telenor was the first company to submit it’s data to the FBR therefore it’s audit was done on priority that found the tax evasion. The committee directed the FBR to complete the audit of all the telecom sector companies within six month and report to the Senate Committee about the findings.

The committee was also informed that cases amounting to rupees 89 billion relating to salea taxes are pending in the courts . The committee was informed that 100 percent penalty will be imposed if any mobile telephone service provider company will be found in withholding tax and Telenor has been issued such notices in this regard for evasion of withholding tax of rupees 267 million.The Committee was also informed that data from the telecom sector companies is being secured on daily basis now to check the payment of taxes.The meeting was attended by Senator Mohsin Khan Leghari, Senator Naseem Jalil, Senator Kalia Ali Agha, Senator Barrister Murtaza Wahab and Senator Mohsin Aziz.

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