Tax troubles

The withholding tax rate was raised to 15 per cent for income tax returns and 30 per cent for the non-filers back when returns on deposits were as high as about 21 per cent. Now that the inflation and policy rates have come down to 8 and 15 per cent respectively and profit returns on deposits have also gone down drastically, continuing with such high withholding tax rates is unjustified.

The rates should be slashed down to 5 per cent for filers and 15 per cent for non-filers so that depositors like low-paid employees and pensioners do not suffer.

M Sharafat Ali Zia

Islamabad

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I happened to buy popcorn from a bakery in Rawalpindi and was charged an 18 per cent sales tax. The sales tax is being applied indiscriminately and no distinction is made as to whether the food item is a ‘necessity’ or a ‘luxury’. As a result of this regressive taxation, ordinary people prefer to buy things from stores that keep no sales records. The government should exempt everyday food articles from the sales tax.

Amjed Jaaved

Rawalpindi