Tax Laws (Third Amendment) Ordinance 2021: Traders decide to launch protest drive

ISLAMABAD: Traders community has decided to lodge a strong protest against the promulgation of the Tax Laws (Third Amendment) Ordinance 2021 in front of the Federal Board of Revenue (FBR) Headquarters on September 29, 2021.

This has been stated by Muhammad Naeem Mir, President All Pakistan Anjuman-e-Tajaran, in a video message to the traders and retailers across the country on Sunday.

According to the President All Pakistan Anjuman-e-Tajaran, trader community and retailers reject the harsh provisions of the Tax Laws (Third Amendment) Ordinance 2021. The documentation measures introduced through the Presidential Ordinance are complicated and it will result in increased penalties on the traders and retailers. The protest is against the harsh tax policies and complicated and double documentation which would increase tax evasion and corruption in the country.

He said that the trader community also rejects the new penalty regime for the retailers under the Point of Sale (POS) system and registration of traders under the Tax Laws (Third Amendment) Ordinance 2021. The discretionary powers of the FBR to register anyone with the POS system are totally unjustified and hence rejected.

He said that the government has also imposed additional advance tax on the rates ranging from 5 percent to 35 percent on professionals using domestic electricity connections. The government has also enhanced Extra Tax rates on industrial and commercial gas and electricity connections to persons, who are unregistered.

Referring to the Ordinance, Naeem Mir stated that the government has increased the amount of penalty for tier-1 retailers, who are not integrated. The powers have been given to the FBR to discontinue gas and electricity connections of persons including tier-1 retailers who are either not registered or if registered not integrated. Moreover, the government has increased amount of penalty for tier-1 retailers, who are not integrated with the FBR.

The FBR can issue notice to anyone for registration with the POS system and non-compliance would result in heavy penalties on the registered persons. The trader community and retailers reject all these harsh measures introduced through the said Ordinance.

He added that if a large number of traders and retailers would be able to gather outside the FBR Headquarters on September 29, the FBR would be forced to take back the harsh taxation measures taken under Tax Laws (Third Amendment) Ordinance 2021.

Copyright Business Recorder, 2021