WITHHOLDING TAX IS CHARGED FIRST ON THE PROFIT THEN AGAIN ON WITHDRAWAL

Home General FBR urged to remove anomalies in WT deduction
FBR urged to remove anomalies in WT deduction
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Karachi : The Union of Small and Medium Enterprises invited the attention of the chairman Federal Board of Revenue (FBR) to the irrationality of 10% withholding tax (WT) deduction on profit earned on savings and term deposits which are routed through bank accounts and again subjected to WT at 0.20% on withdrawals above Rs50000.

President UNISAME Zulfikar Thaver complained that although there is no tax on Behbood Savings Certificates (BSC) for senior citizens, widows and retired civil servants yet when the profit amount is collected through checque and deposited in account and if amount withdrawn is more than Rs50000 WT of 0.20% is charged. Profits on other accounts and saving corticated are subjected to 10% WT and again unfairly subjected to withdrawal WTof 020% on amounts above Rs 50000.

Thaver urged the chairman FBR to examine the irrationality and remove the double taxation of WT. He said the senior citizens are already bearing the brunt of reduction in profit rates on savings accounts and term deposits. He added that they are finding it very difficult to make both ends meet due to reduction in profit rates on one side and inflation on the other.

The government needs to facilitate the senior citizens and make them comfortable first even if the government has to cut its own expenses but unfortunately the government by virtue of legislation secured for themselves all the benefits selfishly and never gave a thought for the senior citizens and retired personnel as to how they would be able to survive against the inflation.

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