Tax notices cause stir among small traders

The Department of Excise, Taxation, and Narcotics Control has imposed a new ‘Professional Tax’ on small traders in the Rawalpindi Division, causing a stir among the local business community.

Small street vendors are now required to pay a professional tax ranging from Rs10,000 to Rs15,000, with a three-day deadline for compliance.

In response to the announcement, the Central Association of Traders has expressed support for small traders, stating that it is akin to financially strangulating small businesses. They have even hinted at the possibility of a full shutdown strike if the tax is not withdrawn immediately.

Small shop owners, particularly those selling items like balloons, candies, potato chips, and pakoras, are facing a professional tax ranging from Rs5,000 to Rs8,000. Central Grocery Merchant Association President Saleem Parvez Butt expressed concern about the economic challenges faced by small businesses over the past two years.

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He argued that the imposition of professional taxes, traditionally reserved for larger enterprises, will pose a threat to the survival of small shops that are already struggling.

President of the Central Association of Traders, Sharjeel Mir, urged the caretaker government to prioritise elections over imposing additional taxes on businesses. Mir announced plans for an all-merchant vendor convention to address the issue collectively, warning of severe consequences if professional tax notices persist. The traders plan to challenge the move in the Lahore High Court’s Rawalpindi Bench.

Despite the backlash, the Department of Excise Taxation and Narcotics Control remains steadfast, asserting that Professional Tax is applicable to all Pakistani citizens engaged in business activities.

Published in The Express Tribune, December 17^th, 2023.