ISLAMABAD: One of the two groups negotiating with the government on the withholding tax issue walked out in protest on Friday, while the other chose to continue negotiations.

Office-bearers from the Anjuman Tajiran Pakistan (Naeem Mir group) remained at the Federal Board of Revenue (FBR) head office to continue talks with the government regarding the withholding tax on all bank transactions above Rs50,000.

The group remained at the FBR house to speak with the finance minister, who arrived at around 8:30pm.

However, the talks were inconclusive. Sources said a settlement is likely to be reached after the by-election in NA-122.

Ajmal Baloch, the leader of the Naeem Mir group, said they had proposed that the threshold be increased. In addition, they proposed that the government set a minimum amount of around Rs300,000 for the deduction of the withholding tax from non-filers of tax returns.

Talks were set to resume after Friday prayers but were delayed because the finance minister was busy in negotiations with the MQM.

Meanwhile, traders from the Anjuman Tajiran Pakistan (Khalid Pervaiz group) walked out of the talks after meeting the FBR chairperson and his team.

As they left the meeting in protest, the traders called the FBR the most corrupt organisation in the country and announced that they would be boycotting the talks.

“They will all land in hell and they want to drag us along too,” Kashif Chaudhry, one of the leaders of the Khalid Pervaiz group, said. He alleged that FBR officials were corrupt; they openly demanded bribes and would wrongly impose heavy fines.

“We only have three options: to pay the incorrect heavy taxes amounting to millions of rupees, or to go to court which means spending time and money on a lawyer, or to bribe the FBR officials, which is the cheapest and shortest way out of this hell on earth,” he said.

Group leaders gathered in Aabpara and held a press conference where they announced that the government should withdraw the withholding tax because it was a tool that increased the FBR’s power.

They added that the government had offered a reduction of the withholding tax to 0.01 or 0.02 per cent for non-filers.

“But we have opposed it,” Allah Dad Tarin said.

He said that the group’s next meeting would be held in Quetta on October 14 to discuss further action.

Published in Dawn, October 10th , 2015

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