Centre urged to review withholding tax

QUETTA: The Balochistan Assembly through a resolution on Saturday asked the federal government to review its decision about withholding tax because it was affecting the business community and other account holders.

The motion tabled by opposition member Husna Bano was converted into a resolution on the proposal of Minister for Law and Parliamentary Affairs Abdul Rahim Ziaratwal.

Taking part in the debate on the withholding tax, Ms Bano, Mr Ziaratwal, Adviser to Chief Minister on Education Sardar Reza Muhammad Barach and opposition member Sardar Abdur Rehman Khetran urged the federal government to resolve the matter amicably.

The house unanimously adopted a resolution, calling on the federal government to allow the provincial government to make legislation for establishing Balochistan Provincial Police Service to take decisions about promotion of officers to Grade 19 and 21.

Sardar Khetran tabled the resolution from both treasury and opposition sides and said that police officers in Grade 18, belonging to Balochistan, had been facing problems for their promotion to higher grades.

The resolution suggests that the federal government should devolve powers of promotion to the province.

Acting Speaker Mir Quddus Bizenjo who presided over the session directed Home Minister Mir Sarfaraz Bugti to submit a report on the issue in one month so that legislation could be made.

Adviser to Chief Minister on Finance Mir Khalid Lango presented the Balochistan Audit Report 2014-15 and Financial Committee report 2014-15.

Published in Dawn, August 16th, 2015

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Comments (14) Closed

PHILOSOPHER (from Japan)

Aug 16, 2015 08:12am

Useless...nobody listens the voices of poor and small provinces...keep knocking on locked doors.

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stranger

Aug 16, 2015 08:21am

Please remove this odd tax. It affects everyone. If government has a problem with low tax collections, please improve your tax collection machinery. Those that are overseas Pakistanis will suffer because of this senseless tax.

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Abu-Salmaan

Aug 16, 2015 09:01am

@stranger Any withholding tax is extortion of money legalised by the government because of the inability, due t to vested interests, to impose higher taxes on those who should be taxed heavily.

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illawarrior

Aug 16, 2015 10:23am

This tax must be a very effective collection method. Why else would businesses be complaining about it - must be stopping them from cheating.

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Jibran

Aug 16, 2015 11:57am

File tax returns and WHT removal will not be required. Good step by government and they should withstand this pressure from the business community.

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Jibran

Aug 16, 2015 12:01pm

@PHILOSOPHER (from Japan) What does it have to do with small provinces? Can we stop with the communalism every time a measure is taken and debate strictly on mertis and demerits. Everybody needs to file tax returns. WHT does not apply in that case. If you have a problem with the process, ask govt to simplify the filing process. Not raise comical issues like "small" provinces and "us" and "them". Taxation is a right. We have one of the lowest tax to GDP ratios in the world. This is the way to inculcate tax culture. If it wasnt working, those are affected would not have been rising against it. Shows its a good step, must be sustained and govt has to whither the pressure from self serving business groups.

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Jibran

Aug 16, 2015 12:03pm

@stranger This is improvement in tax machinery by pushing for tax filing. Please request those who receive your remittances to file tax returns. WHT will not apply. If they can't and find the process cumbersome, either help them or push them to do it.

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Muhammad

Aug 16, 2015 03:37pm

The issue is not as simple as it appears to many, in targeting the tax evaders the government is punishing the savings of the people accumulated over the years. If a non-resident Pakistani an overseas worker has accumulated his savings in Pakistan why he should pay tax on the amount kept in the bank account especially when there is no rule or facility to file NIL income tax return while these people live/work outside Pakistan. For them it has become anti-savings tax!

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Aug 16, 2015 07:42pm

Withholding tax on bank transactions to phone and utility bills is a bad and coercive move which needs to to be stopped and withdrawn by the government immediately

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Awan

Aug 16, 2015 09:05pm

A Pakistani businessman will always complain to give any tax in Pakistan. But they would love to give any form of Tax in Europe and the West. We do not want to pay any tax but at the same time expect from the government to make this country a social welfare state. We have the lowest ratio of Tax-GDP ratio which stands at less than 9 percent. In terms of tax collection we can be compared with Zambia and Senegal and then we talk about the developed world.

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Sabbir Subrati , OMAN

Aug 16, 2015 11:51pm

@Jibran : Govt of Pak receive our hard remittances we do not need your ill advise to file tax return we r not Pakistani and our parent r national, do you go in police station file FIR, FBR is similar to this deptt. W/holding tax will open door MEGA corruption in Pakistan. Let FBR development modern IT base tax collection and become honest every thing will resolve.

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irfan

Aug 17, 2015 08:28am

Government have to ensure this time that these business become Filler .

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irfan

Aug 17, 2015 09:03am

@AW Than Stop Buying Products from those Businesses , which are not Filler .

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Ghulam

Aug 17, 2015 05:27pm

@Sabbir Subrati , OMAN I have no objection to file NIL income tax return if the facility is available outside Pakistan, but, I know, and everyone know, the purpose is not to collect NIL returns but to catch tax evaders. Actually what is going to happen is that traders will find some way out but non-residents overseas workers will be caught in the process, with the result that they will stop sending money back home as far as they could. This is at least I will do. Thank you to all who know nothing of tax and economy and have become experts on such forums!

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