A large number of traders burnt the new income tax return forms on Tuesday in protest against the new policy of the Federal Board of Revenue (FBR) and vowed not to pay taxes unless the previous mechanism was restored. The angry traders were protesting outside the new Sindh Secretariat against what they called "disputed" conditions included in the tax form by FBR this year.
The traders were holding banners and chanted slogans like "FBR is butcher", "the new income tax system will collapse" and "FBR's extortions will not be tolerated". Talking to Business Recorder, All Karachi Tajir Ittehad (AKTI) Chairman Atiq Mir said that the new system had made it difficult for the already shrinking businesses to pay huge taxes.
He said that the previous mechanism of tax assessment was easier to understand, which according to him had now become "very difficult". He expressed fears that the new system would narrow down the existing tax net instead of widening it because of what he termed "negative policy" of the board.
He criticised the FRB for increasing the turnover tax from 0.5 percent to 1 percent this year saying "it is a big blow to the traders and will collapse the taxation culture in the country". The AKTI Chairman said that the board had also failed to make the form simple and easy for the traders' understanding.
Atiq Mir termed the new tax policy as unjust, which according to him would badly damage the small traders' financial position. He urged the federal finance ministry to avoid new experiments in the tax system and form a policy in consultation with the stakeholders.