Traders ‘suffer Rs7 billion losses’ during lockdown

Businesses community claims commercial markets are losing Rs600m per day

RAWALPINDI: Since the businesses, small and big, remained completely shut amid the lockdown and no financial transaction has taken place for over 10 days now, the business and trade community of the garrison city claims losing as much as Rs600 million daily in the main commercial markets of Saddar, Raja Bazaar, Bara Bazaar and such.

Putting their full support behind the government for the lockdown and social distancing measures they said it was necessary to defeat the Covid-19 pandemic.

The figure of loss of 12 days since the shutters of the markets were rolled down has reached around Rs7 billion, Anjuman Tajiran Cantonment President Sheikh Hafeez and Secretary Zafar Qadri told The Express Tribune. They said that the Saddar market, in particular, suffered the most due to the clampdown as it was a wholesale market for different items.

Similarly, Anjuman Tajiran City Spokesperson Naveed Kanwal said that prolonged closure of cloth markets including Moti Bazaar, Raja Bazaar, and Bara Bazaar, has destroyed their business completely. The figure of loss would surge to Rs18 billion until April 14, he estimated. However, the spokesperson backed the decision of allowing movement of goods’ transport to avoid shortage of essential items.

PFDA demands rental waiver

Pakistan Furniture Dealers Association (PFDA) has called for the government to announce a relief package for the furniture industry. PFDA President Taj Abbasi cited that around 90 per cent of the furniture industry existed on a small scale such as the cottage industry level.

He added that they had experienced a sharp decline in sales due to lockdown and were unable to pay their rents and other expenses including utility bills and salaries. He demanded the government announced to waive off shop rents till April and disbursement of interest-free loans for them.

Stamp duty slashed

In order to provide relief to the people amid the Covid-19 situation, the Punjab government has slashed the official stamp duty on sale and purchase of properties by five percent.

Rawalpindi Additional Deputy Commissioner (ADC) Revenue has issued directions to all registrars and related officials to implement the decision of the Punjab government under which the stamp duty has been reduced to one per cent from six per cent. As an outcome of this decision, the property dealings in the district were likely to go up.

The property dealers have termed the decision as ‘a big relief’ for the people.

Property tax waiver

Another gift for the estate owners from the Punjab government was waiver of property tax for three months. Punjab Excise and Taxation Department has waived property tax on residential and commercial properties from March to May. However, no such relaxation has been granted in vehicle token and luxury taxes and the consumers would pay them routinely.

An official of the excise department told The Express Tribune on contact that the decision has been taken in wake of the situation due to Covid-19. Further, he added that the consumers would be facilitated with the installment facility to pay professional and other taxes.

However, there would be a discount for paying dues in one go, he added.

The decision is expected to create an impact on the tax targets for the current fiscal year.

No relief on liquor duty

While all segments were enjoying tax relief, the Punjab government has ruled out the recommendation of the excise department to give any kind of waiver in liquor licence duty.

There are some nine five-star hotels in Punjab that sell liquor to foreign guests under licence. However, the supplies and sales have slumped amid the coronavirus lockdown. These hotels had requested licence fee waiver or at least a discount, which has been refused by the provincial government.

Published in The Express Tribune, April 5^th, 2020.