AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.00 Decreased By ▼ -0.53 (-0.41%)
BOP 6.76 Increased By ▲ 0.08 (1.2%)
CNERGY 4.50 Decreased By ▼ -0.13 (-2.81%)
DCL 8.70 Decreased By ▼ -0.24 (-2.68%)
DFML 41.00 Decreased By ▼ -0.69 (-1.66%)
DGKC 81.30 Decreased By ▼ -2.47 (-2.95%)
FCCL 32.68 Decreased By ▼ -0.09 (-0.27%)
FFBL 74.25 Decreased By ▼ -1.22 (-1.62%)
FFL 11.75 Increased By ▲ 0.28 (2.44%)
HUBC 110.03 Decreased By ▼ -0.52 (-0.47%)
HUMNL 13.80 Decreased By ▼ -0.76 (-5.22%)
KEL 5.29 Decreased By ▼ -0.10 (-1.86%)
KOSM 7.63 Decreased By ▼ -0.77 (-9.17%)
MLCF 38.35 Decreased By ▼ -1.44 (-3.62%)
NBP 63.70 Increased By ▲ 3.41 (5.66%)
OGDC 194.88 Decreased By ▼ -4.78 (-2.39%)
PAEL 25.75 Decreased By ▼ -0.90 (-3.38%)
PIBTL 7.37 Decreased By ▼ -0.29 (-3.79%)
PPL 155.74 Decreased By ▼ -2.18 (-1.38%)
PRL 25.70 Decreased By ▼ -1.03 (-3.85%)
PTC 17.56 Decreased By ▼ -0.90 (-4.88%)
SEARL 78.71 Decreased By ▼ -3.73 (-4.52%)
TELE 7.88 Decreased By ▼ -0.43 (-5.17%)
TOMCL 33.61 Decreased By ▼ -0.90 (-2.61%)
TPLP 8.41 Decreased By ▼ -0.65 (-7.17%)
TREET 16.26 Decreased By ▼ -1.21 (-6.93%)
TRG 58.60 Decreased By ▼ -2.72 (-4.44%)
UNITY 27.51 Increased By ▲ 0.08 (0.29%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 10,450 Increased By 43.4 (0.42%)
BR30 31,209 Decreased By -504.2 (-1.59%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

Depositors in National Saving Schemes (NSS) termed imposition of higher rate of withholding tax on non-filers (at 17.5 percent) effective from the current budget as highway robbery, an anecdotal survey carried out by Business Recorder revealed. The government in budget 2015-16 imposed withholding tax on non-filers with savings of Rs 5 lakh or above at 17.5 percent from the 10 percent on filers and non-filers alike that has been levied since more than decade. The only exemption from the tax is on Behbood Account which is for those above the age of superannuation.
In spite of assurances to the contrary the government's decision to impose withholding tax with effect July 1, 2013 on savings banked in NSS schemes by non-filers in excess of 5 lakhs has been deplored by the depositors. "This is breach of confidence in government assurances," one pensioner told this correspondent. "People investing in NSS are not organised compared to other groups like All Pakistan Textile Mills Association, Flour Mills Association, trader bodies, cement, fertiliser and other industrial sectors so imposing a tax on us is not too difficult. What can we do other than protest at the branch we go to collect our profit?" said Abdullah Khan who has invested Rs 0.5 million in National Savings Scheme.
Another depositor Raja Meharban, a retired government employee, said that the withholding tax as well as reduction in NSS profit rates had hit him hard as the profit from those schemes was his main source of income. Many who bank in NSS are not liable to file returns, yet now have to pay higher rates of withholding tax due to their treatment as non-filers.
An official of the NSS at National saving Directorate said that the amount mobilised in November 2014 under the NSS was Rs 90.3 billion which fell to Rs 22.5 billion in December 2014 and reached the lowest level of Rs 8.4 billion in April 2015. He added that measures such as imposing a 17.5 percent tax discourage people: "savings are must for investment, and the government must revisit its decision," he said On October 1, 2015 the government slashed the rates of return on various National Savings Schemes by up to 68 basis points in the wake of falling inflation and resultant declining interest rates.

Copyright Business Recorder, 2015

Comments

Comments are closed.