ISLAMABAD: Talks rema­ined inconclusive between tax officials and business community on Monday to finalise procedures for implementation of a reduced rate of 0.3 per cent withholding tax on banking transactions of non-filers.

The business community is not ready to file income tax returns and continue to urge the Federal Board of Revenue (FBR) to withdraw the decision.

On July 8, 19-member committee reached an agreement with the business community will file tax returns by September 30, 2015 to avail exemption from the tax.

Instead of sticking to the already agreed agreement, the business community on Monday demanded withdrawal of the adjustable rate of 0.3pc, which was lowered from 0.6pc on their demand.

The businessmen threatened to go on strike on August 1, 2015 if their demand is not accepted.

The Federal Board of Revenue team has conveyed that the tax cannot be withdrawn.

“We want to facilitate business community and at the same time we also want to widen the tax net”, Finance Minister Ishaq Dar told reporters at the FBR House.

The second round of talks , be headed by the finance minister, will continue on Tuesday. (today). Representatives of chambers of commerce and industries from across the country will also participate in it.

Published in Dawn, July 28th, 2015

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