KARACHI: The Union of Small and Medium Enterprises (UNISAME) has expressed deep regret on the shocking demand of Federal Board of Revenue (FBR) for recovery of 5% remaining withholding tax (WHT) from account holders from profits earned during last fiscal year July 2019 to June 2020, says a Press release.
President UNISAME Zulfikar Thaver said the banks and financial institutions were deducting 10% WHT on profit paid to their filer account holders during the period July 2019 to June 2020
The account holders have now learnt from their Income Tax Practioners (ITP) that they were supposed to pay 15% and not 10% if their income on profit has exceeded Rs 500000 per annum
The question raised by account holders is that why was the FBR sleeping all this time and did not clarify with the banks right in the beginning and creating this big burden on the account holders already burdened with highest ever inflation.
Most of the people who depend on the profit from income on savings or certificates are retired senior citizens and now demanding 5% from these people especially during these circumstances of the pandemic and floods is unbearable.
Thaver said “We would also blame the banks for not seeking clarification and the FBR equally for ambiguous notifications causing hardships to income tax filers.”
It is very irresponsible of FBR to leave loose ends in such matters causing problems and difficulties to income tax assesses.
Since the finance bill was passed in the assembly it has to be followed in toto and the tax payers are liable to pay the same. Some account holders may not be in a position to pay the dues due to non-availability of liquid funds in that case it is to be seen how FBR facilitates the under privileged and the senior citizens