Chairman, Pakistan Association of Auto Parts Exporters, Tahir Javaid Malik has demanded of the government to increase withholding tax limit on cheques from existing Rs 25,000 to Rs 200,000. In a statement issued on Monday, the Paapex chairman said that the decision to impose withholding tax on cheques was not correct since its implementation.
The cash handling has increased manifold, which is creating law and order situation in the country. He said that every year, the business community demands end to this tax but the CBR had never given weightage to the demand. He said that all payments were made through cheques in import export business and the withholding tax was adding to the prices of exportable merchandise. He said that withholding tax on cheques might be one of the reasons of decline in exports.