Small Traders Sound Alarm Over Unexpected Tax Demands, Threaten Nationwide Strike

Karachi: A growing wave of concern is sweeping across Pakistan’s small business community. Traders and retailers decry unexpected and steep tax notices from the Federal Board of Revenue (FBR). The traders are part of the government’s recently launched Tajir Dost Scheme (TDS). Many of these traders are now warning of a potential nationwide strike. They demand that the situation be resolved swiftly.

The controversy erupted after traders registered under the TDS were issued tax demands amounting to a staggering Rs60,000. This amount was far beyond the Rs1,200 they had initially been assured. The president of the Karachi Chamber of Commerce and Industry (KCCA) Iftikhar Ahmed Sheikh voiced the frustration. He spoke on behalf of many small business owners. He declared that the high taxes were impossible for shopkeepers to pay every month.

The Tajir Dost Scheme was intended to be a supportive measure, offering small traders a simplified tax structure. There have been recent tax notices. These notices sparked fears about the scheme. It inadvertently drove many of the small businesses to close their doors. Iftikhar Ahmed Sheikh has called for an immediate withdrawal notice. He has urged the government to defer the scheme’s implementation by at least three months.

Adding to the traders’ woes are skyrocketing electricity bills, which have further squeezed their already tight margins. High taxes and soaring utility costs have led many small shopkeepers to the brink. Mr Sheikh warns that continued pressure forces many out of business altogether.

In response to these grievances, major traders’ associations have announced a nationwide shutdown on August 28th. These associations include the Markazi Tanzeem-i-Tajiran and the All Pakistan Anjuman-i-Tajiran. The associations are demanding the suspension of the TDS. They also want a reduction in power rates. Additionally, they call for the removal of various other taxes that are now burdening the sector.

Asif Sakhi, instead of president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), echoed these concerns. He stated that the tax notices have caused widespread unrest among small traders. “We want to be part of we. But these unfair taxes are making it impossible,” Mr Sakhi said. He called for the FBR to renegotiate energy agreements and seek more cost-effective solutions.

The upcoming strike is poised to send a powerful message to the government. Small traders and shopkeepers are banding together to protect their livelihoods. The situation underscores the delicate balance between taxation and economic sustainability, particularly for the nation’s most vulnerable businesses.