Govt vows not to bow to traders' pressure, insists retailers must enter tax net

Rana Ihsan Afzal Khan, Coordinator to Prime Minister Shehbaz Sharif, has stated that the federal government will not yield to pressure from traders, asserting that retailers must enter the tax net.

In a statement released on Wednesday, Ihsan Afzal said, "We will not shy away from negotiations, but we will not come under the traders' pressure. If the traders believe we are making a mistake, we are open to sitting down again."

He further mentioned that Prime Minister Shehbaz intends to restructure the Federal Board of Revenue (FBR), emphasising that the retail sector must be brought into the tax net.

It may be mentioned that a nationwide strike is being observed by traders across Pakistan to protest the recent hike in electricity bills and the imposition of new taxes.

The strike, called by various trader associations in addition to the Jamaat-e-Islami, has led to the closure of business centres in major cities including Karachi, Lahore, and Islamabad.

Meanwhile, FBR sources indicated that the Federal Board of Revenue is prepared to accommodate changes in the tax scheme according to traders' preferences to address the issue of tax collection from traders.

According to FBR insiders, if traders agree, an amendment note could be issued immediately. The draft includes a provision to exempt small traders from taxes.

An income tax return form will be made simple and available in easy-to-understand Urdu. There is also a proposal not to apply sales tax on annual turnovers of up to Rs100 million.