Summary Govt reduced withholding tax percentage to 0.3% for 3 months, traders agree on filing tax returns
ISLAMABAD: (Dunya News) – Negotiations between the government and the traders on the withholding tax have been successful. Government has decided to reduce the withholding tax to 0.3% (previously it was 0.6%) for 3 months while the traders have agreed to file their tax returns, on Thursday reported Dunya News.
Government had imposed 0.6% withholding tax on all banking transactions worth over Rs. 50,000 upon which the traders had protested. Government and the traders held talks in Islamabad and it has been decided between the two parties that the withholding tax will be halved for three months while the traders will file income tax returns on priority basis.
The reduction in tax will be allowed till September 30, 2015. According to Federal Board of Revenue (FBR), the notification of tax reduction will be issued soon.
