Traders’ coalition demands turnover tax be reduced to 0.5pc

ISLAMABAD: Traders’ coalition on Saturday demanded that the turnover tax be reduced to 0.5 per cent ahead of the upcoming federal budget, citing economic difficulties. Speaking at a news conference at the National Press Club in Islamabad, All Pakistan Anjuman-i-Tajiran and Traders Action Committee President Ajmal Baloch said the proposed turnover tax scheme was an excellent initiative that would free traders from “corruption and blackmail”. He appreciated the efforts of the Prime Minister’s Adviser on Finance Bilal Azhar Kiani and his team for introducing reforms in tax collection. “For the first time, serious negotiations were held with representatives of small traders, which largely proved successful after nearly one and a half months of discussions,” Baloch said. He said that if the government implemented the easy tax scheme, it would not only boost tax collection but also protect traders from difficulties created by the Federal Board of Revenue (FBR). “If the scheme is approved and included in a long-term policy framework, it will produce far-reaching and positive results.” Baloch demanded a reduction in the turnover tax rate, claiming that lower rates would “increase overall turnover and business activity”. He further urged Prime Minister Shehbaz Sharif to introduce similar reforms in customs, alleging that customs officials have caused severe difficulties for traders by holding legitimate goods for months, resulting in losses to both traders and the national exchequer. He said traders had also suffered due to international circumstances, while high electricity, petrol and gas prices had badly affected businesses. During his address, Baloch criticised the use of “forceful” tax collection methods and claimed that taxation has often been used as a ‘tool for blackmail’. “There is corruption in the Point of Sale (POS) system,” he alleged, and demanded investigations into the assets of Federal Board of Revenue (FBR) officers, as well as the removal of officers holdi