LAHORE:  The Federal Board of Revenue has agreed to constitute Central Advisory Committee, representing all traders to review withholding tax on banking transactions, and notification in this regard is expected on Tuesday. 

After a long and hectic round of talks with All Pakistan Anjuman-e-Tajiran (Naeem Mir group), the FBR has accepted traders demand and agreed to form one central and 14 regional committees to review WHT issue.

APAT central general secretary Naeem Mir said that it was the demand of APAT to form a central advisory committee and regional committees in Lahore, Karachi, Sargodha, Sialkot, Multan, Faisalabad, Hyderabad, Sukhur, Quetta, Pishawar, Gujranwala, Pindi and Islamabad to resolve the issue of withholding tax, because earlier committees working on WHT issue were representing the chambers only.

He said that the government, first time, seems to be serious to resolve the issues of traders and hopefully all maters will be solved by Nov 15.

The FBR, in consultation with these traders committees will finalize 18-point agenda by November 15. The tax reform package for traders finalized by the FBR and traders advisory committees will be approved by the PM and he is likely to announce this package at Islamabad convention centre in presence of trade representatives from across the country.

“We, the traders, believe in dialogues and if govt accepts and implements our 18-point charter of demand, not only the traders of this generation but also coming generations will appreciate the efforts of APAT.”

Trade bodies those leaders who again and again disrupt dialogue process are not serous to resolve traders’ issues. Tax system needs serous and wide reforms and APAT will not back tax evaders, and neither are we fighting for them.

“We are fighting for those traders who, as a responsible citizen, in national interest, wish to pay tax but remain out of tax net due to system failure. If our 18-point agenda is implemented over 95 percent issues of traders would be resolved.

Discussing major points of charter of demand, he asked the govt to defer WHT on banking ransactions till Dec 31, 2015 and its rate should be cut to 0.1%.

He said that 0.3% WHT on cash withdrawal for filers should be suspended and whole tax collected so far since August 2015 should be refunded to the taxpayers.

He suggested that sales tax act 1999 should be amended and whole ST should be deducted at manufacturing and import level while traders should be exempted from value added tax.

Income tax ord 2001 should be amended and slab and GP systems should be abolished and a simple tax system be introduced. Turnover tax should not exceed the ratio of 0.25% and new slab system (sector to sector) should be started.

New filers of having capital of 500 million, one home, one shop and one vehicle should be exempted from audit for five years under Accounts Regularization scheme.

Sale tax on power bills be eliminated for commercial consumers. Tax returns date should be enhanced. Govt should give guarantee not to impose wealth tax. KPK should be exempted from income tax for three years due to terrorism.