ISLAMABAD: Traders’ coalition on Saturday demanded that the turnover tax be reduced to 0.5 per cent ahead of the upcoming federal budget, citing economic difficulties.
Speaking at a news conference at the National Press Club in Islamabad, All Pakistan Anjuman-i-Tajiran and Traders Action Committee President Ajmal Baloch said 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.
“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,” Baloch said.
He said that if the government implemented the easy tax scheme, it would not only boost tax collection but also protect traders from difficulties created by the Federal Board of Revenue (FBR).
“If the scheme is approved and included in a long-term policy framework, it will produce far-reaching and positive results.”
Baloch demanded a reduction in the turnover tax rate, claiming that lower rates would “increase overall turnover and business activity”.
He further urged Prime Minister Shehbaz Sharif to introduce similar reforms in customs, alleging that customs officials have caused severe difficulties for traders by holding legitimate goods for months, resulting in losses to both traders and the national exchequer.
He said traders had also suffered due to international circumstances, while high electricity, petrol and gas prices had badly affected businesses.
During his address, Baloch criticised the use of “forceful” tax collection methods and claimed that taxation has often been used as a ‘tool for blackmail’.
“There is corruption in the Point of Sale (POS) system,” he alleged, and demanded investigations into the assets of Federal Board of Revenue (FBR) officers, as well as the removal of officers holding dual nationality.
Referring to vehicles confiscated by customs authorities over the past three years, he urged the prime minister to order an inquiry into who is using those vehicles.
He also demanded that small jewellers be included in the turnover tax scheme, adding that its implementation would eliminate the need for POS systems. He urged the government to take measures to enhance commercial activity across the country.
Speaking at the press conference, All Pakistan Anjuman-i-Tajiran Punjab and Rawalpindi President Malik Shahid Ghafoor Paracha said business conditions were “extremely poor” and many small traders had been forced to abandon their businesses and drive rickshaws or work for ride-hailing services.
“Inflation has reached alarming levels due to rising petroleum prices, while the government has turned the petroleum levy into a means of bridging budget deficits.”
He added that the turnover tax could be acceptable if its structure remained unchanged for at least three years.
Meanwhile, All Pakistan Anjuman-i-Tajiran Balochistan President Imran Tareen and Khyber Pakhtunkhwa President Malik Mehr Elahi said both provinces had been severely affected by terrorism and should therefore be granted special tax exemptions.
They further alleged that customs officials in Balochistan seize goods from roadside locations, only for the same goods to reappear in markets a few days later.
During the press conference, the traders also said investors who had taken their capital abroad were facing difficulties due to international conditions.
They urged the government to announce an amnesty scheme to encourage the return of investment to the country and to improve law and order.
The traders also demanded that the capital value tax (CVT) charged at the time of vehicle purchase be considered sufficient, arguing that imposing it on every transfer was impractical.
