The withholding tax rate was increased to 15 percent for income tax returns and 30 percent for non-filers, while the return on deposits was around 21 percent. Now that inflation and policy rates have come down to 8 and 15 per cent respectively and the rate of return on deposits has also come down, it is unwarranted to continue such high withholding tax rates.
The rates should be reduced to 5 percent for filers and 15 percent for non-filers so that depositors like low-salaried employees and pensioners do not suffer.
M Sharaf Ali Zia
Islamabad
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I bought popcorn from a bakery in Rawalpindi and was charged 18% sales tax. Sales tax is being applied indiscriminately and no distinction is made whether the food item is a ‘necessity’ or a ‘luxury’. As a result of this regressive tax, common people prefer to buy goods from shops that do not keep any sales records. Government should exempt daily food items from sales tax.
Amjad Javed
Rawalpindi