RAWALPINDI, Aug 15: The business community of Punjab has threatened to take extreme steps if amendments to Finance Act- 2006 regarding income tax and sales tax were not withdrawn immediately.

We will try our best to resolve the issue through negotiations, and if these do not succeed, the business community may go for the option of shutter down and strike all over the country, Rawalpindi Chamber of Commerce and Industry (RCCI) President Jalil Ahmed Malik said while speaking at a press conference here on Tuesday.

Presidents of chambers of commerce of Lahore, Sheikhupura, Bahawalpur and Sargodha as well as former presidents of RCCI also expressed their concern over the government’s tax regime.

The Punjab business community held a meeting in Rawalpindi to discuss the implications of the new amendments incorporated in the Finance Act, and to decide the future course of action.

Mr Malik said the business community had always helped the government attain the target of taxes. The Central Board of Revenue (CBR) had set Rs680 billion as target whereas it has collected Rs710 billion, but at the same time it failed to give any relaxation to traders, he added.

The RCCI president said the business community would raise the issue with CBR and other high officials of the federal government and force them to withdraw these amendments.

He said that through Finance Act 2006, clause (I) of section 21 of the Income Tax Ordinance 2001 had been substituted. Under this amendment the scope of payment of expenditure exceeding Rs10,000 has been enlarged and all banking channel has been covered. Now all expenditures whether these relate to profit and loss expenses or trading account are under the ambit of this section, he added.

It is a matter of great concern for the entire business community of the country as the substitution of the clause is practically impossible to be enforced.