ISLAMABAD, May 3: The Islamabad Chamber of Commerce and Industry (ICCI) has proposed abolition of 0.01 per cent withholding tax on cash withdrawal in excess of Rs25,000 from banks.

The ICCI in its budget proposals for 2006-07 demanded that the levy should be abolished in the upcoming budget as it had a negative impact on trading activities in the country.

According to the proposals released here on Wednesday, the chamber said that for macro trading, entrepreneurs were facilitated by banks but micro traders were deprived of this incentive. “Banks should offer loans on goodwill and stock guarantee on planned basis.”

The chamber appealed to Shamshad Akhtar, Governor of the State Bank, to take serious action and direct the banks to announce special incentives for small traders.