HYDERABAD: President Hyderabad Chamber of Commerce and Industry Adeel Siddiqui has urged Federal Finance Minister to withdraw decision for recovery of fixed retailer tax through electricity bills from unregistered small shopkeepers. He said that tax was always recovered on annual income in the world but nowhere was it recovered through bills before the earning was made.
In a statement issued here Tuesday he termed such recovery from small shopkeepers as great injustice. He drew attention of finance minister that this fixed retailer tax was meant for unregistered traders whereas registered traders were paying billions income and sales taxes annually. He said fix retail tax was a good planning but the way it was introduced was questionable. He equated such taxation policy with ‘goonda tax’ and such policy would become seriously questionable.
Now, he said, warehouses of taxpayer businessmen were receiving bills along with fixed retailer tax and this falls in category of double taxations. He said that even closed warehouses and shops were being required to pay the tax which was totally unfair. He said it had caused unrest among traders. HCCI president said that this tax was in bills of June whereas fiscal year commences from July. He urged government to try to understand issues of traders failing which they would be knocking at the door of judiciary.
He said that as per federal budget 2022-23 small shopkeepers would be required to pay this fixed retailer tax from July 1 through their electricity bills every month. He said reason for this recovery was that commercial power consumers. For instance, he said, Rs3,000 would be payable on a bill of Rs30,000 and Rs5,000 in case of Rs50,000 electricity bill. He said that Rs10,000 fixed tax would be recovered on a bill over and above Rs50,000 per month.
He added that inactive tax defaulters would be recovered to pay double the amount of tax which ranged from Rs36,000 to Rs120,000 annually. He said it was a complex issue for small shopkeeper and percentage of tax was very high. He said that these shopkeepers work in streets and mohallahs to eke out a living but with this levy millions of them would have to close their shops. He called for a broader consultation with Federation of Pakistan Chamber of Commerce and Industry and business community representatives to lessen the percentage of taxation and fixed retailer tax should be recovered annually.
He said the traders lacking capacity to pay fix retail tax would be deprived of electricity on account of disconnection for on payment of heavy bills. He said government should take corrective measures for revival of economy. He said that higher rates of electricity, gas and petroleum products have undermined small and medium enterprises (SMEs) and their closure would lead to massive unemployment.