Traders call federal budget 'cruel and inflationary'

RAWALPINDI:

The Grocery Merchants Association has rejected the newly announced federal budget, calling it cruel, a manipulation of words and a poison budget because it will bring a destructive storm of inflation on retailers.

Central Secretary General Rizwan Shaukat and President Saleem Pervez Butt said the budget lacks meaningful reforms and has many ambiguities. They claimed the burden of achieving the tax revenue target is being unfairly placed on retailers.

"Retailers are already being blackmailed under the pretence of the Point of Sale (POS) system, and now a new drama is unfolding in the name of digital invoicing," they said, describing the budget as nothing more than a manipulation of data. The absence of a uniform tax system, they said, is creating confusion and benefiting a privileged class under the guise of tax exemptions.

The officials said that requirements such as identity card verification, POS systems, and sales tax compliance are enforced mainly on grocery retailers, opening doors to exploitation. "Rather than expanding the tax net, the government is overburdening existing taxpayers," they said, adding that sales tax evasion doesn't happen at the retailer level, but no action is taken to address it at its root."

They also demanded a reduction in the base price of electricity and the implementation of a uniform rate across the board. Moreover, they called for the immediate withdrawal of the 18% general sales tax on solar panels.