In a significant development, the Federal Board of Revenue (FBR) has agreed to revise the tax scheme in response to traders’ demands, signaling a potential shift in the ongoing discussions over tax collection. The proposed changes aim to simplify the tax process and provide relief to small traders.
The revisions come as traders across Pakistan observe a nationwide strike to protest the recent hike in electricity bills and the imposition of new taxes. Traders’ associations and opposition political parties have called for the strike, leading to the closure of business centers in major cities, including Karachi, Lahore, and Islamabad.
The traders’ demands include the retraction of the ‘Tajir Dost Scheme’ notification, targeting high-profile individuals for tax collection, and avoiding additional taxes on the public. The FBR’s willingness to negotiate and revise the tax scheme is a positive step towards addressing the traders’ concerns.
The proposed changes include simplifying the income tax return form and issuing it in easy-to-understand Urdu. This move is expected to facilitate small traders who struggle with complex tax forms. Additionally, the FBR has proposed exempting small traders from tax liabilities and exempting businesses with an annual turnover of up to Rs 100 million from sales tax.
The traders’ strike has highlighted the need for a more inclusive and trader-friendly tax policy. The government’s willingness to listen to traders’ demands and revise the tax scheme is a step in the right direction. However, the strike may extend indefinitely if the government does not meet the traders’ demands.
The FBR’s decision to revise the tax scheme is a positive development, but it is crucial to ensure that the changes are implemented effectively. The government must engage with traders and address their concerns to avoid further disruptions to the economy.
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