950823

Additional taxes

on construction

industry termed

unjust

LAHORE: Pakistan Engineering Council (PEC) has described as highly unfair and unjust the levy of 5 percent income tax and 4 percent withholding tax on the construction industry as it will be an unbearable burden on the contractors in the country.

In a meeting of the executive council chaired by PEC president, Engr. Mazhar Ali, here on Wednesday the council members strongly supported the demand of the Federation of Punjab Contractors Welfare Association for immediate withdrawal of the additional income tax and withholding tax imposed on construction contractors in the 1995-96 budget.

The PEC council felt that if these taxes were not withdrawn, the construction industry, which is already sick and neeeds government patronage, will collapse and thousands of people will be out of business and million of workers will become jobless.

It was pointed out at the meeting that if new taxes were not withdrawn, the development projects would receive a serious setback which will be a great national loss.-PPI