ISLAMABAD: The government has decided to reduce the withholding tax on bank transactions from 0.6 percent to 0.3 percent. The decision was taken during the successful dialogue between the government and trader representatives here on Thursday.
The withholding tax was announced in the budget 2015-16 on banking transactions for the non-filers. Later talking to media, Finance Minister Ishaq Dar said that the reduction in the withholding tax will be applicable till September 30 this year.
He said the traders have agreed to file tax returns on priority basis by September 30. He said after that time 0.6 percent withholding tax will be applicable on the bank transactions for the non-filers.