The new government announce a new tax scheme

The government will announce a new tax scheme to discourage traders from joining the anti-government PTI in March

The government will announce a new tax scheme to discourage traders from joining the anti-government PTI in March

The current government plan in the budget (2022-23) to establish a fixed tax system for small businesses will restrict trader participation in the PTI Azadi March on May 25.

According to sources, the new system will encompass small shopkeepers who do not fit into the Tier-I (large retailers) category with simplified documentation for the trader’s community. The Minister pledged to implement a fixed program for small traders and settle all taxation-related issues of business and trade during the latest meeting of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) with the Federal Minister for Finance and Revenue, Miftah Ismail.

Azadi March

It remains to be seen whether the current government’s favorable tax policy for small business owners will deter small business owners from joining the Azadi March. However, on May 25, certain trading organizations in Lahore boycotted the PTI Azadi March.

Ajmal Baloch, Chairman of the All Pakistan Anjuman-e-Tajaran (APAT), told the media on Monday that the current government’s fixed tax policy had nothing to do with the protest. Despite the current government’s vow to implement a fixed tax structure, traders affiliated with the PTI will participate in the demonstration, according to Ajmal Baloch.

The Tax Laws

In the past, Member (IR Operations) stated that all small business uncertainties. And misconceptions about the Tax Laws (Third Amendment) Ordinance resolve. “The Tax Laws (Third Amendment) Ordinance-2021 has nothing to do with small traders,” remarked an FBR member.

Tax Ordinance-2001

Previously, Member IR Operations declared unequivocally that POS did not apply to small merchants. While clarifying Section 114B of the Income Tax Ordinance-2001. Member IR Operations further state that entrench interests are misleading. The general public into believing that their electricity and gas connections will be disconnect. As well as their mobile phones. He underlined that this approach will only be applied to people who do not appear on ATL.

Traders have already protested against tough tax rules and cumbersome and duplicate documentation, which they believe will boost tax evasion and corruption in the country.

Ordinance 2021 for broadening the tax base

Additionally, on September 17, the government gave the FBR extensive authority to disconnect non-filers mobile phones SIMs, electricity, and gas connections, as part of the Revenue Laws (Third Amendments) Ordinance 2021 for broadening the tax base.

According to a trader representative, the government has also give. The FBR the authority to disconnect gas and electricity connections of anybody, including tier-1 retailers. Who either not register or are not integrate under Section 3(9A) of the Sales Tax Act 1990.

Point of Sale (POS) integration with the FBR

“Point of Sale (POS) integration with the FBR, sales tax registration and the enforcement of enhanced withholding tax have nothing to do with small traders,” according to the FBR.

It further state that the presidential ordinance’s increase withholding tax. Which collect through power bills, will not apply to commercial consumers. The protesting traders, on the other hand, request that the FBR be strip of all powers confer by the ordinance. They also stated that they would not allow the installation of POS systems under any circumstances. And that they had refused the registration of traders for sales tax.

The powers provide to FBR through the ordinance

“The powers provide to FBR through the ordinance should be revoke. Traders are not educated, thus they should not be address in technical terms,” the traders request. After the FBR and small merchants achieved an agreement on the Tax Laws (Third Amendment). Ordinance-2021 at the FBR Headquarters. Markazi Tanzeem Tajiran, representing small traders, postponed their protest call.

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