LAHORE: Warning the government of a countrywide shutter-down strike, the Federation of Pakistan Chambers of Commerce & Industry’s Businessmen Panel (BMP) and the Pakistan Industrial and Traders Associations Front (PIAF) have asked the FBR to stop harassing the traders and delay the implementation of the so-called Tajir Dost Scheme, as the undue and excessive tax notices of the FBR have sparked panic among the business community.
The BMP chairman and patron-in-chief of PIAF Mian Anjum Nisar observed that the traders are being issued undue notices to submit monthly tax of Rs 60,000, which is totally unaffordable and unjustifiable, as the tax department has been ignoring what it has agreed with the traders.
He urged the government to introduce special measures broadening the tax base by taking the business community on board, besides forming joint committees at district levels to address the challenges faced by local trade and investment.
He said that the BMP and PIAF will fully back the shutter-down call given by the traders’ organization on August 28 (Wednesday) against unjust taxation and government anti-traders policies.
Mian Anjum Nisar strongly opposed the collection of double taxes on imports and demanded to immediately withdraw it. He presented these demands, which were unanimously approved in the meeting of the Executive Committee of the PIAF through a resolution here in PIAF office on Sunday.
The FPCCI former president said that the notices have been issued to shopkeepers across various markets, irrespective of their registration status, causing widespread concern. We strongly oppose this unjust tax demand, which is inappropriate for both registered and unregistered individuals.
He appealed the Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to acknowledge the challenges faced by shopkeepers, whose businesses are already struggling due to diminished purchasing power and inflation. He urged the FBR to halt its demands for such an unrealistic tax.
He said that tax officials are intentionally undermining the tajir scheme by issuing notices to everyone, regardless of their registration status. Despite promises that small shopkeepers would only face a tax of Rs 1,000 to Rs 1,200, notices have instead demanded an unmanageable Rs 60,000, which many shopkeepers find impossible to pay. He emphasized that the Tajir Dost Scheme, which currently suffers from significant flaws, needs a thorough review in consultation with all stakeholders. This is crucial to prevent further difficulties for shopkeepers already struggling amid rising inflation.
He further noted that the severe inflation and high utility tariffs have already made it difficult for shopkeepers to sustain their livelihoods. In such circumstances, demanding an excessively high tax of Rs 60,000 per month could force shopkeepers to shut their businesses permanently, exacerbating public and economic problems, he warned.
He also demanded the immediate withdrawal of two percent tax imposed on exports by the Khyber Pakhtunkhwa government. He asked for the abolition of fixed tax Rs 1,000 on commercial and domestic consumers in the electricity bills. The BMP chief also called for immediate withdrawal of the fixed tax imposed by FBR on shopkeepers ranging from Rs 10,000 to Rs 45,000.
He termed the Tajir Dost Scheme as an anti-trader initiative and said that the budget proposals presented by the chamber should be implemented with true spirit. He, while presenting the suggestions to increase mutual trade, export and transit trade said that there is a need to deregulate the country’s economy. He said that the BMP had initiated an organized struggle against the IPPs contracts in which they have gained success because these wrong agreements are damaging the national economy.
He said that for the development and stability of the country’s economy, it is very important to provide facilities and incentives to the business community because the business community can play its full role in putting
the economy in the right direction.
HE paid tribute to the sacrifices made by the people, business community and security forces of the country for peace.
He said that for the improvement of business, trade and economy, it is the need of the hour to provide a peaceful and conducive environment for investors. He called for establishing good relations with neighboring countries including the promotion of Pakistan-Afghan mutual trade.
He said that the government should fully pay attention to the provision of youth and women social and economic empowerment, and provision of health, education and basic facilities.
He said the business community of the country was aware of the significance of the tax for economic development and it always remained at the forefront for ensuring full tax compliance for documenting the national economy and social prosperity.
The FPCCI former president termed the track and traces system as imperative to check those involved in tax evasion and underlined the need for large-scale reforms in the Federal Board of Revenue, besides privatisation of loss making government entities and promotion of exports to initiate a journey towards economic stability.
Demanding incentives to allure investors for strengthening the economy, he said the National Tax Number must be declared mandatory for opening of bank accounts and for the sale and purchase of properties, adding that supplies to retailers having no NTN should be stopped henceforth.
He urged for introducing a proper reward system to acknowledge outstanding business leaders and encourage them as well as to promote and develop the tax compliance culture in the country for achieving sustainable economic growth and social development.
Copyright Business Recorder, 2024
Comments
Comments are closed.