KARACHI, Sept 25: Sheikh Humayun Sayeed, former vice-president FPCCI, has urged the finance minister to put income received under National Saving Scheme in category of passive income.

In a statement issued on Wednesday, he said till recent past the income from National Saving scheme was tax free and now it’s subject to excessive rate of taxation.

As a result of this, Humayun Sayeed said that a large number of widows, orphans, retired persons who had been heavily depending on income from NSS are under pressure of taxation.

Therefore, he urged that the income from NSS should be classified as passive income to be taxed at the rate of 10 per cent withholding tax as a final discharge of tax liability.

He further said that this move will fulfil the objective of capital market development without causing distress to a very large number of affected people from all walks of life.