June 27, 2003	Friday	Rabi-us-Sani 26,1424

KARACHI, June 26: The new amendments in the budget 2003-04 regarding income tax and sales tax regime are creating confusion and worries among the small and medium size businessmen and traders.

This was observed during a meeting of the Karachi Chamber of Commerce and Industry’s special committee for small traders held on June 24. The meeting was presided over by ex-chairman of Site Association of Industry Siraj Kassam Teli. KCCI vice-president Mohammad Salim Kapadia, senior vice-president Nasir M. Chandna and chairman of KCCI’s special committee for small traders Abdul Majeed Memon also attended the meeting.

According to a KCCI press release, representatives of the small traders expressed their apprehensions about the unlimited powers assigned to tax collecting officials, saying that the documentation of each and every transaction is not possible. Also the maintenance of books of accounts is not possible for the small and medium size traders. Consequently, these conditions are causing great worries for them and are being considered as barriers to provision of a level-playing field for business as claimed by the government.

It was collectively opined that the present situation was very alarming. The small traders representatives urged the KCCI to help them resolve their grievances through interaction with the government functionaries, otherwise they would be forced to close down their businesses.

Siraj Teli assured them of KCCI’s full support and expressed his concern about the impracticability of these laws as many ambiguities existed in these amendments. He called for urgent clarifications and removal of such clauses that could be implemented. He added that small and medium businesses constituted the backbone of country’s economy, therefore, the government should give preferential status to this sector and provide a hassle free and conducive environment for rapid growth and sustainable economy.

He suggested that a meeting should be arranged between the representatives of small traders and the CBR chairman so that both can exchange their views and come out with a solution for resolving the grievances of traders. He urged the CBR to arrange workshops and seminars for educating the small and medium size businessmen on income tax and sales tax issues regularly.

Abdul Majeed Memon asked the CBR to hold dialogue on issues of record keeping and sales tax registration so that the fears, misgivings and apprehensions among traders could be removed.

The representatives of small traders expressed their gratitude for the support extended to them and satisfaction over KCCI’s proposals and future course of action.