The business community Wednesday called off their countrywide shutter-down strike after an 11-point agreement with the government regarding taxation on businesses in the country. According to All Pakistan Anjuman-e-Tajiran (APAT) Chairman Ajmal Baloch, the following points were agreed between the government and the traders
1. The government will not launch any action against traders who are not buying and selling goods on the basis of their CNICs till January 31 of next year.
2. Traders making a turnover of 100 million will give a turnover tax of 0.5 per cent, rather than the 1.5 per cent currently set by the government.
3. Any trader making a profit of 100 million will not pay the withholding tax.
4. Registration for the sales tax will be done if a trader’s yearly electricity bill is more than 1.2 million, rather than the Rs 600,000 currently set by the government.
5. Turnover tax for low-profit making sectors will be determined in consultation with a committee of traders. FBR will address the problems faced by the traders after consulting the committees that will be formed at the regional and central levels.
6. Problems of the jewelers will be resolved on a priority basis with the help of the Jewelers Association.
7. Withholding tax imposed on brokers’ license renewal fees will be reviewed.
8. A special desk will be set up at FBR headquarters in Islamabad to resolve problems faced by the traders which will be led by a 20 or a 21 grade officer. Monthly meetings will also be held with the representatives of the traders.
9. A simple form will be introduced for registration and income tax filing by the new traders.
10. Shops smaller than 1,000 square feet area will be exempt from the sales tax and any decision regarding the issue will be taken in consultation with the traders committee.
11. Any decision regarding the registration of sales tax for retailers, involved in the whole sale business, will be done in consultation with the traders committee. Adviser to Prime Minister on Finance Dr Abdul Hafeez Sheikh, flanked by Federal Board of Revenue (FBR) Chairman Shabbar Zaidi and PTI stalwart Jahangir Tareen, announced the agreement at a press conference in Islamabad.
Addressing on the occasion, Dr Hafeez Sheikh said in accordance with the vision of Prime Minister Imran Khan, the government wants to facilitate traders and promote business activities in the country. He said facilitating and involving traders in economic activities is imperative for achieving the economic goals and promoting growth and development. He said the government wants to impose due taxes and eradicate corruption and this ultimately will be beneficial for traders themselves. He said that taxes are being imposed to support downtrodden segments of the society. He lamented that there are around 4 million traders but only 0.393 million are paying taxes, adding that bringing the tax evaders into tax net is a priority of the government. Speaking on the occasion, business leader Khawaja Shafeek said the traders are willing to pay taxes, however they face some issues which need to be resolved. Later in the evening, Hafeez Shaikh in a tweet termed the agreement between the government and traders a good news for the economy.
