Traders have announced countrywide shutter-down strike on October 29-30 against the government's decisions regarding registration of traders with the sales tax department, fixed income tax scheme and condition of Computerized National Identity Cards (CNIC) number of unregistered buyers.
Talking to Business Recorder here on Thursday, President All Pakistan Traders Union Ajmal Baloch said that Federal Board of Revenue held two meetings with the traders' associations during recent past but refused to entertain any of the traders' requests. Tax authorities categorically conveyed to traders that Hafeez Sheikh was out of the country and it was not possible for the FBR to take any decision on its own, he added.
Ajmal Baloch claimed that FBR officials have divergent statements on the taxation related issues. "If the FBR had given us assurance of fulfilling our demands, we might have cancelled their strike call. However, there is no such assurance by the FBR, which is unfortunate," he said.
During the last two meetings with the FBR, tax authorities simply refused to entrain the traders' proposals leaving no room for them except to go for countrywide shutter-down strike.
Baloch said that the APTU has outrightly rejected the Federal Board of Revenue's fixed tax scheme and announced that their strike call will not be called off until FBR revises the scheme in line with their recommendations formulated in consultation with the former finance minister Asad Umar.
The president of All Pakistan Traders Union said that FBR's scheme for small shopkeepers would lead to double taxation for small shopkeepers.
He said that every trader is already paying taxes between Rs 30,000 to Rs 50,000 per month in the form of taxes on electricity and gas bills. The tax paid is adjustable against the final tax liability of traders on filing of annual income tax return.
If the shopkeepers pay a fixed tax of Rs 40,000 along with existing Rs 40,000, it would result in double taxation, the traders' leader argued.
The FBR in its proposals has sought input from stakeholders as well as the general public for any modification in the scheme. Subsequently the scheme will be put before the federal cabinet for final approval.
The representatives of the All Pakistan Traders Association informed that there would be no negotiations with the Federal Board of Revenue (FBR) on whose request the traders called off their against the government's anti-business measures in July.
A committee of the FBR was constituted for negotiations with traders but the committee's attitude was totally non-serious. However, there was no progress of the committee and consequently there was no outcome.
Traders were assured by the FBR that a simplified fixed tax regime for traders (special procedure for shopkeepers) would be introduced; however, it unveiled different tax slabs in the scheme.
Similarly, the FBR has introduced a different scheme (income tax special procedure for traders), according to which trader, including both retailer and wholesaler, shall be an individual or association of persons carrying on business of buying and supplying goods to the general public or other businesses for the purpose of consumption and has a turnover less than Rs 50 million; self-invested equity less than Rs 50 million; cost of fixed assets less than Rs 100 million; and number of employees less than or equal to five.
"We have proposed a simple tax regime for traders with tax on annual return," he claimed.
Copyright Business Recorder, 2019
Comments
Comments are closed.