Traders up in arms over new PHA tax

Traders of the garrison city have rejected ‘inflated’ bills under the head of ‘shop board tax’, issued to them by the Rawalpindi Parks and Horticulture Authority (PHA).

The PHA has issued tax bills ranging from Rs40,000 to Rs150,000 to both small and large shopkeepers throughout the city. According to the official notice, failure to comply with the tax payment will result in the sealing of shops.

Various unions of butchers, grocery shop owners, property dealers, and other business owners have collectively announced their refusal to pay the inflated tax.

Central Grocery Merchant Association Central President Salim Parvez Butt argued that boards displayed outside shops merely serve the purpose of identification and do not generate any profit.

He further pointed out that shopkeepers have already paid board taxes to both the Metropolitan Corporation and the Cantonment Board. Butt insisted that it is unfair for two government bodies to impose similar taxes on the same establishments.

Last year, the administration had agreed that each shopkeeper would only pay Rs1,000 as board tax, and they complied accordingly. The sudden issuance of significantly higher bills by the PHA has raised concerns among shopkeepers, who argue that they earn their income legitimately and pay their taxes promptly. They are unwilling to pay additional board taxes repeatedly, he added.

Shopkeepers who are registered taxpayers are willing to fulfill their obligations but are adamant about not paying the board tax imposed by the PHA.

If coerced, they have threatened to initiate a complete citywide strike, accompanied by strong protests outside the PHA office. In response, the PHA maintains that it has the authority to collect taxes from all entities within its jurisdiction, irrespective of their objections.

The standoff between the PHA and the shopkeepers continues, with tensions running high in Rawalpindi.

Published in The Express Tribune, July 15^th, 2023.