Lahore: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI)\u2019s Standing Committee Chairman and Lahore Businessmen Front leader Sardar Usman Ghani has said that the government\u2019s move of reducing the Withholding Tax ratio on banking transactions for non-filers has created a cash economy, according to a news report. According to Ghani, this has occurred because there is now almost no difference of tax ratio on banking transactions for either, resultantly favouring the non-filers.<\/p>\n
Various financial experts have pointed out that the imposition of the WHT on banking transactions has defeated the real purpose of discouraging cash economy, reducing the private business deposits significantly. The currency in circulation has also increased significantly from 21.5% on average from July 2015 to June 2017. Dr. Qais Aslam, a prominent economist, has said that this has caused private business deposits to fall from 27.6% to 25% after the imposition of the WHT.<\/p>\n
Ghani further added that pensioners, widows and children are paying a 0.06% tax on their banking transactions even when they shouldn\u2019t be paying this amount.<\/p>\n","protected":false},"excerpt":{"rendered":"
Lahore: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI)\u2019s Standing Committee Chairman and Lahore Businessmen Front leader Sardar Usman Ghani has said that the government\u2019s move of reducing the Withholding Tax ratio on banking transactions for non-filers has created a cash economy, according to a news report. According to Ghani, this has occurred because there is now almost no difference of tax ratio on banking transactions for either, resultantly favouring the non-filers. Various financial experts have pointed out that the imposition of the WHT on banking transactions has defeated the real purpose of discouraging cash economy, reducing the private business deposits significantly. The currency in circulation has also increased significantly from 21.5% on average from July 2015 to June 2017. Dr. Qais Aslam, a prominent economist, has said that this has caused private business deposits to fall from 27.6% to 25% after the imposition of the WHT. Ghani further added that pensioners, widows and children are paying a 0.06% tax on their banking transactions even when they shouldn\u2019t be paying this amount.<\/p>\n","protected":false},"author":18,"featured_media":37720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[6444],"persona":[],"class_list":{"0":"post-37719","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"tag-details-on-reduction-in-withholding-tax-on-bank-transactions"},"acf":[],"yoast_head":"\n