KARACHI: The Federal Finance Minister Ishaq Dar has announced to reduce the withholding tax on all banking transactions exceeding Rs50,000 from 0.6 percent to 0.3 percent.

The decision was taken at a meeting between the government and traders’ representatives in Islamabad on Thursday.

The withholding tax was announced in the budget 2015-2016 on banking transactions exceeding Rs50,000 a day for the non-filers.

Later talking to media, Finance Minister Ishaq Dar said that the reduction in the withholding tax will be applicable till September 30, 2015.

He said the traders had agreed to file tax returns on priority basis by September 30. He said after that time 0.6 percent withholding tax would be restored on all banking transactions for the non-filers.

On the other, trade associations have also rejected 0.3 percent withholding tax and decided to continue their protest.