LAHORE: A delegation of traders, led by Khalid Pervez, visited the Lahore Chamber and met with President of Lahore Chamber, Kashif Anwar. The delegation expressed their concerns about the changes in the sales tax system introduced in the Finance Act.
The participants included President of Lahore Stationery Association Urdu Bazaar Jameel Fazil, Secretary Information Mahboob Iqbal, Chairman Muhammad Raza, Vice President Abdullah Khan, and others.
The delegates stated that the changes introduced in the current Finance Act would have a significant impact on businesses and business costs, leading to increased prices of these items. The business community has strongly protested and demanded that educational materials be exempted from taxes to avoid an increase in educational expenses.
They mentioned that imposing taxes on educational materials would significantly increase educational costs, placing an additional financial burden on students and parents.
The delegates noted that business conditions are already under pressure, and sales rates have dropped to very low levels. If such taxes are imposed, it will become challenging to conduct business, forcing many traders to close their businesses.
It is noteworthy that the Finance Act 2024 has introduced significant changes in the sales tax system, affecting various stationery items. Previously exempt items under the Sixth Schedule, such as writing ink, drawing ink, erasers, exercise books, pencil sharpeners, geometry boxes, pens, markers, and pencils (including colored pencils), will now be subject to a 10% sales tax. Additionally, extra taxes will be applied under sections 236G and 236H.
The tax deduction rate for filers will be 0.5%, while non-filers will be subject to a 2.5% tax. Those with a tax deduction amount exceeding PKR 100,000 will be required to register under the Sales Tax Act 1990. Filers can make purchases up to PKR 20 million without sales tax registration, while the limit for non-filers is PKR 4 million.
LCCI President Kashif Anwar stated that the Lahore Chamber stands by its business community in every way and is raising the voice of traders to the corridors of power. He emphasized that it is the state’s responsibility to maintain health, education, and law and order, and that providing maximum facilities to the business community is essential for economic development. He acknowledged that the country is under economic pressure but urged the government to reconsider the tax on education and withdraw it immediately.
Kashif Anwar appreciated the Punjab government’s efforts for students but appealed for making education more affordable. He stressed that children cannot progress without education, and while focusing on skill development and increasing literacy rates, such taxes and laws will impact segments of society already burdened by inflation.
The President of Lahore Chamber highlighted that the ongoing wave of inflation in the country has significantly increased the costs of electricity, gas, essential items, and business operations. He stated that the traders demand a review of these taxes on education and that the system should continue as before to provide relief to the business community during these challenging times. He assured that he would raise the traders’ voices on every forum.
Copyright Business Recorder, 2024
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