KARACHI: Small traders on Friday welcomed the federal government’s proposal to introduce a fixed tax of one percent in the fiscal budget for 2026–27 but expressed disappointment over the absence of relief on fuel oil prices and electricity tariffs, which they described as major obstacles to economic growth.
Mehmood Hamid, President of the All Pakistan Small Traders and Cottage Industry Association, Karachi chapter, said the trading community supported the fixed tax regime and hoped it would remain unchanged in future budgets.
“If no further taxation is imposed, local businesses can adjust to the fixed tax system,” he said.
However, he voiced concern over record-high fuel prices and electricity tariffs, noting that small traders had expected a larger reduction in these input costs. He said industrial and business growth could only gain momentum if production costs were rationalised to affordable levels.
“These high input costs are a stumbling block to economic growth,” he said.
Hamid said the cottage industry had suffered the most due to expensive fuel and power, and called for concessions for grassroots industries. He stressed that the fixed tax system should continue without bureaucratic interference, which would also help improve tax collection.
He appreciated the government’s plan to introduce a faceless tax audit system to eliminate direct interaction between tax officials and businessmen.
Copyright Business Recorder, 2026
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