Electricity bills: Traders protest against imposition of ‘fixed tax’

ISLAMABAD: Traders Monday warned the government of a country-wide shutter-down strike on August 17, if the issue of fixed tax on electricity bills was not resolved.

On Monday, Finance Minister Miftah Ismail, who held a meeting with a delegation of Markazi Tanzeem-e-Tajiran Pakistan headed by its President Muhammad Kashif Chaudhry, was informed about the problems being faced by the traders due to the government’s decision to collect sales tax through electricity bills.

The Finance Ministry, in a statement issued subsequent to the meeting, stated that the “finance minister addressed their apprehensions regarding taxation on electricity bill and assured them to resolve their issues”.

However, addressing a press conference after the meeting with the finance minister, the Markazi Tanzeem-e-Tajiran Pakistan president said that traders are suffering very badly due to the present government’s decision of imposing sales tax on electricity bills, increasing electricity and gas prices, and the continuous depreciation of the rupee against the dollar.

Chaudhry flanked by other office-bearers explained that sales tax is imposed either on importers or manufacturers but the government has also decided to collect it from the small traders monthly Rs3,000 to Rs30,000. Even those traders whose electricity bill was either Rs1,000 or Rs2,500 are being charged Rs3,000 or Rs6,000 sales tax instead of those whose electricity bill was Rs30,000 and above monthly.

Electricity bills: Business community rejects collection of ‘fixed-tax’

He said that the traders have decided that they would not submit sales tax charged through electricity bills and if the distribution companies of Wapda disconnected their meters, traders would not allow it and the power distribution companies’ offices will be besieged.

He also alleged that the government was taking decisions on the instruction of the International Monetary Fund (IMF) but traders reject the collection of sales tax through electricity bills.

He claimed that the government has not taken them into confidence before imposing this tax and asked Prime Minister Shehbaz Sharif and Finance Minister Miftah Ismail to tell whom they have taken into confidence.

He said that if sales tax on electricity bills was not withdrawn there will be a country-wide “shutter down strike on August 17 for one day and then for an indefinite period. We have decided that if the same policy continues, they will go on a shutter down strike on August 17. If the government did not change the decision, then the shutter down strike will be extended for an indefinite period.”

Sharjeel Mir, president of Punjab traders’ association that they were fully behind the strike on August 17.

The Finance Ministry said that a delegation of traders led by Kashif Chaudhry, Sharjeel Mir, Zia Ahmed Raja, and Tahir Taj Bhatti met with the finance minister and informed him about the issues being faced by the business community in general and traders in particular with regard to taxation on the electricity bill. The delegation requested the finance minister to resolve their issues as traders have been playing a very positive role in terms of providing employment and a significantly positive role in the economic development of the country.

Ismail acknowledged the contribution of the business community in the economic development of Pakistan and assured them that the present government will take every required step to facilitate and support this community.

The finance minister addressed their apprehensions regarding taxation on electricity bill and assured them to resolve their issue.

Copyright Business Recorder, 2022