The government has decided to reduce the withholding tax on bank transactions from 0.6 percent to 0.3 percent.

The decision was taken during the successful dialogue between the government and trader representatives in Islamabad on Thursday.

The withholding tax was announced in the budget 2015-16 on banking transactions for the non-filers.

Later talking to media, Finance Minister Ishaq Dar said that the reduction in the withholding tax will be applicable till 30th September this year.

He said the traders have agreed to file tax returns on priority basis by 30th September. He said after that time 0.6 percent withholding tax will be applicable on the bank transactions for the non-filers.

Finance Minister Ishaq Dar also had a meeting with Army Chief General Raheel Sharif in Rawalpindi . 

They discussed issues relating to early return of TDPs, their resettlement and execution of planned development works in FATA.

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