Dollar is likely to go above Rs 200
ISLAMABAD: After the sudden imposition of withholding tax on exchange companies by FBR, the value of dollar is likely to go above Rs 200.
According to the report of the English newspaper quoting the representatives of the exchange companies, notices are being issued to the exchange companies for non-payment of withholding tax by the FBR which was withdrawn in 2016.
The tax notices have sparked a wave of havoc in the exchange companies, with their representatives saying the extra cost would be passed on to consumers, which could raise the value of the dollar by more than Rs 200.
Malik Bostan, chairman of Exchange Companies Association of Pakistan, said he was receiving more than a billion rupees tax-paying notices in the form of withholding tax, which was enacted in 2014 and withdrawn in 2016.
He said that companies would pass on the burden of 16% withholding tax to consumers who would have to bear an additional burden of more than Rs 20 per dollar, resulting in exchange rate of dollar being Rs 200 or more.
He said it is a conspiracy against the government. Government is already facing criticism as the rupee depreciates. If the dollar reaches to Rs 200, the black market will replace the legal business of exchange companies.