KARACHI: Chambers of commerce and traders’ bodies on Saturday threatened to launch a countrywide strike after small businesses and retailers were issued “hefty” tax notices from the Federal Board of Revenue (FBR).

Trader’s bodies decried the tax challans, to the tune of Rs60,000, saying that they would prove counterproductive to the aims of the Tajir Dost Scheme (TDS), recently launched by the government.

According to them, those who registered under the TDS scheme were promised they would not have to pay more than Rs1,200 in taxes. But now, they are being served notices to pay an unbearably high amount of Rs60,000, said Iftikhar Ahmed Sheikh, president of the Karachi Chamber of Commerce and Industry (KCCI), adding that it was “impossible for any shopkeeper to pay Rs60,000 every month”.

He urged the FBR to immediately withdraw all notices and put off implementation of the scheme for at least three months. Mr Iftikhar said: “It seems that tax officials are trying to make the TDS a failure as notices are being served to everyone, including unregistered individuals.” The scheme needs to be reviewed in consultation with all stakeholders so that “shopkeepers, who are already battling for survival, could be saved from falling into penury”, the KCCI chief said.

Associations call for strike on 28th, want Tajir Dost Scheme deferred

He said exorbitantly high electricity bills had set off a bout of inflation that had made it tough for small shopkeepers to earn their bread and butter. “The demand to pay Rs60,000 as tax every month will leave shopkeepers with no other choice but to wind up their business.”

Mr Sheikh appealed to Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to restrain the FBR from “demanding such an unrealistic tax”.

The Markazi Tanzeem-i-Tajiran and the All Pakistan Anjuman-i-Tajiran have called a countrywide shutdown on Aug 28 to protest against the TDS, the rising power rates, agreements with the IPPs and imposition of different taxes. The heads of Markazi Tanzeem-i-Tajiran and the All Pakistan Anjuman-i-Tajiran said in a press conference on Friday traders had rejected the TDS, calling upon the government to withdraw withholding tax on commodities.

The traders’ representatives called upon the government to take back taxes on poultry, medicines, real estate, exports and the salaried class.

Asif Sakhi, the vice president of the Federation of Pakistan Chambers of Commerce and Industry, condemned the tax notices of Rs60,000 served on small traders. “Tax notices are causing unrest and harassment among small traders and small industrialists. These should be withdrawn in the national interest,” Mr Sakhi said.

“Small traders want to be a part of the system, but they won’t pay undue and unfair taxes.”

He urged the FBR to renegotiate all agreements with IPPs and procure electricity for the national grid from “cost-effective sources” and without any strings.

Published in Dawn, August 18th, 2024