Lahore: Government would have to find out an amicable solution to the withholding tax on bank transactions to ensure a business friendly atmosphere in the country.
“The Economy is well on the track and cannot afford any confrontation between the government and the business community which is backbone of the economy.”
In a statement issued here Wednesday, the LCCI President Ijaz A. Mumtaz 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.
He said that measures like imposition of withholding tax on bank transactions would not be 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.
Ijaz A. Mumtaz said that though formation of a committee and cut in withholding tax is a step in right direction but business community is yet not satisfied and want complete withdrawal of withholding tax.
He said that the Lahore Chamber of Commerce and Industry is with all the trade and industry 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 & 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 said that Federal Finance Minister would be asked to take all trade and industry related decision in consultation with the business community which is backbone of the economy.
Ijaz A. Mumtaz said that the Lahore Chamber of Commerce & Industry advocates the broadening of tax net but all measures should be taken in consultation with the stakeholders.