ISLAMABAD: The Federal Board of Revenue (FBR) has expressed its willingness to amend the
tax scheme according to the demands of traders, signalling a potential shift in
the ongoing discussions over tax collection.According to FBR sources, a revised note could be issued promptly if traders
agree, with proposed changes including exempting small traders from tax
liabilities.
One of the significant amendments under consideration is simplifying the income
tax return form and issuing it in easy-to-understand Urdu.
Additionally, there is a proposal to exempt businesses with an annual turnover of
up to Rs 100 million from sales tax.
Earlier, Rana Ehsan Afzal, the Prime Minister’s coordinator, had asserted that
the federal government would not succumb to pressure from traders, insisting
that retailers must be brought into the tax net.
However, he indicated that the government remains open to negotiations.
A nationwide strike is being observed by traders across Pakistan to protest the
recent hike in electricity bills and the imposition of new taxes.
The strike, called by various trader associations in addition to support from
opposition political parties, has led to the closure of business centres in major
cities including Karachi, Lahore, and Islamabad.
Laying out their demands, Ajmal Baloch, president of the All Pakistan Anjuman
Tajiran, and Kashif Chaudhry, chief of the Markazi Anjuman Tajiran, earlier said
that if the government is earnest about engaging with business owners, it must
first retract the ‘Tajir Dost Scheme’ notification.
They proposed that the government should target high-profile individuals for tax
collection to alleviate the country’s financial troubles and reduce reliance on the
IMF.
They also urged the government to avoid imposing additional taxes on the
public, asserting that traders will not accept arbitrary tax demands.
They warned that the strike could be extended indefinitely if the government
does not rescind the notification.
The traders also criticised the prime minister for admitting that the budget was
influenced by the IMF, calling it highly embarrassing. Additionally, they
highlighted that traders face high electricity costs while government officials
and bureaucrats enjoy various benefits.