KARACHI: State Minister for Revenue Hammad Azhar has assured the business community that withholding tax (WHT) on cash withdrawal from bank accounts will be abolished for tax filers so as to encourage ease of doing business.
President (acting), Karachi Chamber of Commerce and Industries(KCCI) Khurram Shahzad said here Friday, sharing details of the meeting held in Islamabad between the state minister and KCCI delegation.
He said KCCI’s recommendations for the forthcoming Finance Bill to be announced on Jan 23 were extensively discussed during the meeting.
Hammad Azhar assured the delegation, that also included Vice Chairman BMG and former President KCCI Zubair Motiwala, Haroon Farooki, Anjum Nisar, Former President Haroon Agar and Former Senior Vice President Ibrahim Kasumbi to incorporate relevant suggestions under the bill.
The delegation that extensively discussed problems being faced by the business and industrial community was said to be assured that Final Tax Regime (FTR) for Commercial Importers will be restored under the upcoming Finance Bill.
It was also agreed on the occasion that there was need to withdraw sales tax and WHT on sales of used/second hand capital goods/textile machinery by manufacturers/local traders.
Acting President of KCCI the State Minister further agreed to withdraw notices of mandatory Audits under section 214D to late filers of returns.
It was agreed that the powers under Sections 37, 37A, 37B,38, 40, 40B of Sales Tax Act will only be exercised only after prior approval of Member FBR and above.
Any such actions will be conducted in the presence of representative of Relevant Chamber /Association, he added.
It was also said to have been agreed in principle to withdraw the exemption to Large Import Houses under Section 148 I – Sub Section 7, Sub Clause D of Income Tax Ordinance, providing Exemption of 6 percent WHT and other levies.
Ceiling for AOPs and individuals to be treated as with-holding agents will be enhanced to amount of turnover exceeding Rs 200Million, said the KCCI office bearers adding that status of individuals having turnover below Rs 200 million will be restored prior to the status of 2013. Acting President of KCCI said that all the proposals given by the chamber were in the overall interest of the economy, that would remove distortions in tax regime, enhance the Ease of Doing Business (EODB)and support increase in revenues.
He hoped that the proposals will be implemented as agreed by the ministry.