Retailers: Turnover tax termed discriminatory

ISLAMABAD: The Islamabad Chamber of Small Traders has fiercely opposed the government’s plan to slap a 2% tax on the turnover of retailers in the forthcoming budget announcement, terming it highly discriminatory.

“The unjust tax will trigger inflation and protests and will meet the same fate as the tax amnesty scheme that was launched last year but failed to attract traders as the government could hardly raise Rs1 billion,” commented Shahid Rashid Butt, President of the Islamabad Chamber of Small Traders.

Traders could not bear more burden as they were already frustrated by the high cost of energy, multiple and irrational taxes and ever-increasing demands of government officials, he said.

Butt pointed out that the government had already pushed many traders towards cash economy, transactions in US dollars and on slips. The turnover tax would further increase the volume of undocumented economy, added the official.

Published in The Express Tribune, May 18^th, 2016.

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