Turnover tax has been imposed on individuals, AOP and proprietorship in the federal budget of 2010-11. It is very harsh and impracticable, especially for those dealers who distribute the products of multinational companies and manufacturers because such companies fix small trade margin, which ranges from 2% to 3.5% and on the strict terms and conditions that dealer could not charge more than the fix price by the manufactures.
We are dealers of a big multinational company for the last several years and our trade margin ranges from 2% to 3.5% with a strict condition that we could only trade within prescribed rates and within the orbit of limited margin. How it is possible that we pay 1% turnover tax with the above mentioned meager margin when profit is very limited and turnover is extremely high.
In view of the above facts, it is suggested that such hardship cases of dealers of big manufacturers may be redress immediately and 1% turn over tax be abolished, otherwise we would be forced to close down our business.
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