ISLAMABAD: While federal budget for the upcoming financial year is expected to be announced next month, traders of twin cities of Islamabad and Rawalpindi on Saturday demanded that the turnover tax rate should be reduced to 0.5 percent as business expenses have become extremely difficult to manage.

They also demanded special tax relief for Khyber Pakhtunkhwa claiming that it has been severely affected by terrorism.

Speaking at a news conference at the National Press Club, President of the All Pakistan Anjuman-i-Tajiran and Traders Action Committee Islamabad, Ajmal Baloch stated that the proposed Turnover Tax Scheme was an excellent initiative that would free traders from corruption and blackmail.

He appreciated the efforts of the Prime Minister’s Adviser on Finance Bilal Azhar Kiani, and his team for introducing reforms in tax collection.

He said that for the first time, serious negotiations were held with representatives of small traders, which largely proved successful after nearly one and a half months of discussions.

Ajmal Baloch stated that if the government implemented the easy tax scheme, it will not only increase tax collection but also protect traders from difficulties created by the Federal Board of Revenue (FBR).

He added that if the scheme was approved and included in a long-term policy framework, it would produce far-reaching and positive results. He demanded a reduction in the turnover tax rate, claiming that lower rates would increase overall turnover and business activity.

He further urged the prime minister to introduce similar reforms in the customs department, alleging that customs officials have created severe difficulties for traders by holding legitimate goods for months, causing losses to both traders and the national exchequer. He said traders have also suffered due to international circumstances, while expensive electricity, petrol, and gas have badly affected businesses.

Ajmal Baloch criticised the use of forceful tax collection methods and claimed that taxation has often been used as a tool for blackmail. He alleged that there was corruption in Point of Sale (POS) system and demanded investigations into the assets of FBR officers, as well as the removal of officers holding dual nationality.

Referring to whereabouts of vehicles confiscated by customs authorities over the past three years, he urged the prime minister to order an inquiry that who are using those confiscated vehicles.

He also demanded that small jewellers be included in the turnover tax scheme, adding that implementation of the scheme would eliminate the need for POS systems. He urged the government to take measures to enhance commercial activity across the country.

President of Anjuman-i-Tajiran Punjab and Rawalpindi, Malik Shahid Ghafoor Paracha, said business conditions were extremely poor and many small traders have been forced to abandon their businesses and drive rickshaws or work for bike-riding services. He stated that inflation has reached alarming levels due to rising petroleum prices, while the government has turned the petroleum levy into a source of recovering budget deficits. He added that the turnover tax could be acceptable if its structure remained unchanged for at least three years.

Chairman of All Pakistan Anjuman-i-Tajiran Balochistan, Imran Tareen, and President of Khyber Pakhtunkhwa, Malik Mehr Elahi, stated that both provinces have been severely affected by terrorism and should therefore receive special tax exemptions. They further alleged that customs officials in Balochistan confiscate goods from roadsides, only for the same goods to reappear in markets a few days later.

President of Anjuman-i-Tajiran Rawalpindi Cantt, Sheikh Abdul Hafeez, said that investors who had invested abroad were facing difficulties due to international conditions. He urged the government to announce an amnesty scheme to encourage investment back into the country and to improve law and order conditions.

Representing the Motor Dealers Association and serving as General Secretary of G-8 Markaz, Waseem Abbasi demanded that the Capital Value Tax (CVT) charged at the time of vehicle purchase should be considered sufficient, arguing that imposing the tax on every transfer was impractical. He also called for the introduction of a simplified form and a practical policy framework.

President of the Jewellers Association, Asif Sheikh, stated that FBR policies have pushed the jewellery business to the brink of destruction. As a result, he claimed, gold in Pakistan was currently being sold at nearly Rs. 17,000 per tola cheaper than international market prices.

Published in Dawn, May 24th, 2026