govt agrees to bring down bank transaction tax to 0.3

ISLAMABAD: The federal government on Thursday agreed to slash withholding tax on bank transactions to 0.3 percent, after a successful round of talks with the representatives of traders.Federal Finance Minister, Ishaq Dar said the government is ready to cut down the withholding tax on bank transaction from 0.6 percent to 0.3.He, however, said that those traders who failed to file income tax returns by September 30 would be charged the withholding tax on bank transactions at the rate of 0.6 percent.Earlier, the government had decided in the budget of 2015-16 to charge 0.6 percent withholding tax on bank transactions of Rs50,000 or more from non-filers.