September 29, 2020

Traders Reject The Fixed Taxation Policies Proposed By FBR

The Trader’s Associations have rejected FBR’s new taxation policies for the traders. The FBR had announced three taxation categories for the traders, namely the simplified tax regime, fixed tax regime and issuance of licenses to all businesses. According to the proposed FBR policies, it is evident that the government is planning to bring the vast majority of the unregistered retail sector into the tax net and register all operating businesses.

The Central General Secretary of All Pakistan AnjumanTajiran’s (APAT) Mr. Naeem Mir, while tearing the taxation policies document, said that the association rejects the proposal, as the FBR did not consult them before drafting any policy.

The proposal for the implementation of these policies will be put forward by the FBR to the Cabinet for approval in the coming week. The traders have already threatened the government with a nationwide shutter down strike after Eid-al- Azha, and if the proposal gets approved, it might increase the tensions between traders and the government even further.

According to the statements of  Mr. Naeem Mir, the traders have three major contentions:

  1. There are over 3.1 million small retailers in the country and are already paying their taxes on electricity bills.
  2. It is highly unfair to tax retailers based on their locations.
  3. The policies do not cover a vast range of retailers, including retailers, lawyers, shops in air-conditioned malls, etc.

He further said that the trader’s associations will continue to protest against the policies of the government, unless and until the government does not agree to their demands. He further added that traders will conduct a shutter down strike for four days in August and then they will shut down their businesses indefinitely in the Ashura holidays.

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