PM asked to intervene to resolve WHT dispute: PEW
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The Pakistan Economy Watch (PEW) of Friday asked Prime Minister Nawaz Sharif to intervene to diffuse tensions between government and business community over imposition of withholding tax (WHT) on banking transactions.
It is responsibility of the Government to save existing policy of improved revenue generation from failure, it said.
In past all the policies to increase government’s income had backfired due to overdependence of the governments on the tax bureaucracy which is not aware of the ground realities, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that determination of Finance Minister Ishaq Dar on the issue of WHT is laudable but some reservations of wholesalers and retailers must be taken into account.
Dr. Murtaza Mughal said that FBR has always preferred indirect taxation while avoiding income tax which is not in the national interest.
He said that apart from whole sellers and retailers, the textile sector is also uneasy over imposition of taxes in the recent budget which has resulted in closure and shifting of industrial units.
Government should consider reversing the new taxes otherwise situation of investment, exports and labour market will receive a blow.
Dr. Mughal said that farmers have also taken to the streets due to frequent rise in electricity tariff and increased price of other inputs including fertiliser and seed which should be taken seriously lest their critical sector succumb.
Government should prefer imposing direct taxes and improve export and investment situation at any cost as country cannot survive forever with a begging bowl.
