The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to withdraw withholding tax on banking transactions immediately which has created unrest among the business community. The LCCI President Sheikh Muhammad Arshad on Friday said that this tax is hitting the trade and industry hard. He said that withdrawal of withholding tax on banking transactions would encourage non-filers to come into the tax net and government would achieve its all targets aimed at expansion of tax net.
"There should be no withholding tax for the filers as they are already performing their national obligation with honest", he said. A number of trade and industrial associations have approached to the Lahore Chamber and informed that imposition of tax on all banking transactions has caused unrest and put the interests of business community on stake, he added.
He said that imposition of this tax is forcing business community to conduct its monetary transactions in cash that would promote the undocumented economy. He said all business-related decisions should be taken in consultation with the stakeholders as being done in the developed countries. He urged the Federal Finance Minister to take all trade and industry related decision in consultation with the business community which is backbone of the economy. The Lahore Chamber advocates the broadening of tax net but all measures should be take in consultation with the stakeholders, he added.