The Federal Board of Revenue (FBR) on Tuesday requested the trader community to provide alternative solutions for the valuation tables used to determine the monthly advance tax that will be collected from business outlets and retail shops across the country. This development came after a meeting held at the FBR House, where traders expressed their concerns over the existing valuation tables, demanding their withdrawal.
The meeting brought together a joint committee composed of representatives from both the FBR and the trader community. Key attendees on the FBR side included the FBR Chairman, Member Inland Revenue Policy, and Member Inland Revenue (Operations). Representing the traders were prominent figures such as Ajmal Baloch, President of the All Pakistan Anjuman-e-Tajran, as well as trader leaders Kashif Chaudhry and Sharjeel Mir.
During the meeting, the traders pushed for the withdrawal of the current valuation tables used by the FBR to fix the tax for retail shops and businesses. According to the traders, the tables were causing undue hardship and did not accurately reflect the financial realities faced by small business owners across Pakistan. They highlighted that many traders, especially those from smaller cities and rural areas, found it challenging to comply with the tax system under the current framework.
In response, FBR officials acknowledged the concerns but emphasized the need for traders to propose an alternative method for determining the monthly tax. The FBR stressed that tax collection is crucial for the country’s financial stability and economic growth and that an effective tax system should be in place for all businesses, big or small.
To reach a resolution, the FBR urged the trader representatives to come up with feasible suggestions on how taxes could be fairly collected from each retail shop and business outlet. The FBR made it clear that while they were open to revisiting the current valuation system, they needed concrete proposals from the traders that would still ensure the collection of taxes in an equitable manner.
On Tuesday, both parties reviewed the valuation tables for various cities and took note of the amendments proposed by the joint committee. The committee is expected to meet again to finalize a workable solution that addresses the concerns of both the traders and the tax authorities.
In a separate meeting with a delegation of traders at the Central Secretariat, Naeem Mir, Chief Coordinator of the Tajir Dost Scheme, reiterated the importance of the program. He stated that the Tajir Dost Scheme is a national project designed to streamline tax collection from traders and ensure their contribution to the economy. “There is no option other than implementing the Tajir Dost Scheme as the country cannot be run without collecting taxes,” Mir emphasized.
He further highlighted that the traders from all provinces often cite various reasons for not paying taxes, yet no effective tax collection mechanism has been implemented prior to the Tajir Dost Scheme. The scheme aims to rectify this by providing a transparent, simple, and practical method for traders to fulfill their tax obligations.
Mir pointed out that tens of thousands of traders across the country continue to evade taxes, which undermines the government’s efforts to enhance revenue collection. He expressed optimism that there was now a consensus among stakeholders, paving the way for the successful implementation of the Tajir Dost Scheme.
As part of the effort to simplify tax collection, the FBR has introduced the “Asaan” tax return form, which offers traders an easy registration and tax filing process. Mir invited non-filers to take advantage of the scheme and register through the simplified form. This initiative is part of a broader effort by the FBR to make the tax system more accessible and encourage compliance among traders who may have previously found the process too complicated.
The “Asaan” tax return form is designed to reduce the bureaucratic burden on traders, making it easier for them to understand and meet their tax obligations. This is seen as a crucial step in increasing the number of taxpayers and ensuring that everyone contributes fairly to the national economy.
The prime minister has given special directives to prioritize the legitimate demands of traders and to provide full facilitation for them. Recognizing the critical role that traders play in Pakistan’s economy, the government is working to ensure that their concerns are addressed while still maintaining an effective tax collection system. The Tajir Dost Scheme, along with the “Asaan” tax return form, is expected to strike a balance between facilitating traders and boosting the government’s tax revenues.
