HYDERABAD: Hyderabad Chamber of Small Traders and Small Industry (HCSTSI) President Muhammad Saleem Memon, while talking about the budget 2026-27, said that if the federal government does not provide relief to small traders and small and medium enterprises (SMEs) in the upcoming budget, small businesses across the country will face a severe crisis.
He said that additional withholding taxes, complex tax system and anti-business policies have already created difficulties for traders and industrialists, while new financial restrictions may further affect business activities.
He demanded that the government introduce a simplified tax system for SMEs in the Budget 2026-27, reduce withholding taxes and provide incentives to join the documentary economy instead of harassing traders. He further demanded that businesses with a turnover of up to Rs 50 million for small traders be exempted from the strict conditions of Section 111 and unnecessary inquiries so that as many small traders as possible can become part of the documentary economy without fear or doubt.
He added that in the current situation, small traders avoid coming into the system due to unnecessary complications and concerns, so the government should take steps that attract traders towards documentation instead of scaring them.
He said that small businesses are the backbone of the country’s economy, employment and local trade, so the government must prioritise the protection of traders and industrialists in the budget-making process.
Speaking further on the budget proposals, Memon said that the increasing industrial and commercial electricity tariffs and the continuous increase in the prices of petroleum products have put the survival of small traders and industries at risk.
He remarked that small industries of Hyderabad, especially in the areas of broadloom, textiles, auto parts, handicrafts and cottage industries, are facing severe difficulties due to expensive electricity and increasing production costs, while many small units have closed down and others are close to closing down.
Copyright Business Recorder, 2026
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