ISLAMABAD: Traders community on Friday demanded the government to introduce simplified tax system for retailers, real estate sector, agriculture, and industries in the upcoming budget.
President of the Pakistan’s Central Organization of Traders Kashif Chaudhry along with other leaderships addressing a press conference here at the National Press Club said that one-page tax return form in Urdu should be introduced for traders and that traders filing tax returns should be awarded an “Honest Taxpayer” shields or certificates.
Mr Chaudhry also demanded that the Federal Board of Revenue should not harass tax filers, the 5.1 percent minimum turnover tax should be abolished, super tax should immediately be withdrawn, and sales tax should be reduced to a single-digit rate.
Patron-in-Chief of the Central Organization of Traders Pakistan Khawaja Shahid Razaq Sikka, Chairman Karachi Sindh Tajir Ittehad Sheikh Habib, Punjab President and President of Anjuman Tajran Registered Rawalpindi Sharjeel Mir, Khyber Pakhtunkhwa President Sharafat Ali Mubarak, Acting Sindh President Javed Memon, General Secretary Khyber Pakhtunkhwa Sheikh Saeed and other trader leaders attended the press conference.
They urged the FBR to make the simplified tax scheme a success. They said that demanded separate categories and a simplified taxation system for jewelers.
Kashif Chaudhry called for reductions in interest rates, electricity tariffs, and petroleum prices, along with lower PTA taxes on mobile phones and incentives for the IT sector.
He demanded restrictions on FBR raids, arrests, and unlimited powers, while also calling for an end to lockdowns after Eid and the full restoration of business activities.
He added that a simple tax scheme should be introduced for traders with an annual turnover of up to Rs. 200 million, and both new and existing filers should have the option to join the scheme.
Mr Chaudhry said that traders should be exempted from point-of-sale systems and digital invoicing requirements.
He demanded the abolition of withholding tax deduction responsibilities for traders under the scheme and reiterated the removal of the 5.1 percent minimum turnover tax. He proposed that only 0.25 to 0.50 percent tax should be imposed on declared turnover, while withholding taxes deducted on electricity, telephone bills, and other utilities should be adjustable. He added that traders could even agree to a minimum annual tax payment of Rs. 25,000.
He also demanded that traders adopting the simplified scheme should not face unnecessary questioning regarding their properties or vehicles, and that action against unusual bank transactions should only be taken after consultation with trader representatives. The simplified tax scheme should continue in future years with exemption from audits.
Traders leaders proposed changing the definition and conditions of Tier-1 retailers and demanded that traders accepting digital payments should not be forced to install point-of-sale systems.
They also proposed increasing the annual electricity bill threshold from Rs1.2 million to Rs2 million and limiting point-of-sale implementation in air-conditioned malls to brands and chain stores only.
Kashif Chaudhry regarding the real estate sector, proposed reducing taxes under Sections 236C and 236K to one percent, abolishing Section 7E, and reducing FBR property valuation rates by at least 40 percent. He also demanded special tax relief for overseas Pakistanis purchasing property.
He further called for reductions in sales tax and federal excise duty to improve ease of doing business, lower import duties on raw materials, and greater facilities for industries. He demanded a review of the NFC Award, reductions in development expenditures, and an end to VIP culture and official protocols.
Published in Dawn, May 23rd, 2026