Rawalpindi Chamber of Commerce and Industry (RCCI) has rejected Federal Board of Revenue (FBR) proposal to increase withholding tax (WHT) on imports/exports, which would further aggravate the business conditions in the country. Increase in WHT will definitely affect the exports of the country by increasing the cost of doing business, said RCCI president Syed Asad Mashhadi here on Monday.
"We were expecting decrease in the taxes in view of the current economic crisis in the country, but the increase in WHT has shocked the entire business community of country", he said. He expressed concern over the recommendation of increase in cash withdrawal from banks saying that the business community largely has rejected the proposal to increase WHT on cash withdrawal from 0.3 percent to 0.6 percent, on exports from 1 to 2 percent and proposed WHT increase on imports from 2 per cent to 5 percent. "The industries have plunged into ravine of loss and this increase will further aggravate the situation", he added.