950812

Levy of WT

on establishment

of new units

opposed

RECORDER REPORT

HYDERABAD: Mazharul Haq, Chairman, Hyderabad SITE Association of Trade and Industry and ex-member Sindh SITE Board has strongly condemned the imposition of withholding tax on new industrial projects and added that levy of this tax would badly harm the pace of industrialization in Sindh.

Haq while talking to Business Recorder here on Saturday said that Income Tax Department has demanded payment of withholding tax at the time of granting approval for the building plan of all industrial projects and factories by the SITE.

He said the department has directed the SITE management to collect one percent of withholding tax of the estimated cost of construction of the building before granting approval of the building plan and another one percent before issuing completion certificate.

The cost of construction is to be estimated on the basis of the rates adopted for similar constructions by the Pakistan Public Works Department, the Provincial Building Department, KDA, Clifton Cantonment Board and KMC whichever is the highest.

Haq said that this was like a bolt from the blue and under these circumstances anyone work hardly be prepared to invest in any industrial venture in the riot-torn province of Sindh.

He demanded immediate withdrawal of the withholding tax as hundreds of industrial units were already closed and the entrepreneurs needed encouragement to invest in Sindh.