The President Hyderabad Chamber of Commerce and Industry Adeel Siddiqui has urged the Federal Finance Minister to withdraw the decision for recovery of fixed retailer tax through electricity bills from unregistered small shopkeepers.
In a statement issued here on Tuesday, he said that tax was always recovered on annual income in the world but it was being recovered here through bills before the earning was made. He termed such recovery from small shopkeepers as great injustice.
He drew the attention of the finance minister that this fixed retailer tax was meant for unregistered traders whereas registered traders were paying billions of rupees in respect of income and sales taxes annually. He said fixing retail tax was good planning but the way it was introduced was questionable.
He said that now warehouses of taxpayer businessmen were receiving bills along with fixed retailer tax and this came in the category of double taxation. Even closed warehouses and shops were being required to pay the tax which was totally unfair, he said adding that it caused unrest among traders.
The HCCI president said that this tax was in bills of June whereas fiscal year commences from July. He urged the government to understand issues of traders failing which they would be knocking at the door of the 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 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 procedure of recovery should also be changed adding that power distribution companies had their own ax to grind and consumers did not trust these
companies because of their detection and over billings.
He further said due to detection the percentage of tax would increase in electricity bills which was tantamount to an enmity with traders. He said the traders lacking capacity to pay fix retail tax would be deprived of electricity on account of disconnection.
He emphasized that the government should take collective measures for the revival of the economy. He said that higher rates of electricity, gas and petroleum products had
undermined small and medium enterprises (SMEs) and their closure would lead to massive unemployment.
