Business Recorder
ISLAMABAD: Pakistan Anjuman-e-Tajiran has raised serious objections to the draft of the tax scheme (Asan Tax Scheme) for traders proposed by Minister of State for Finance Bilal Azhar Kayani. Traders’ representative Muhammad Naeem Mir has urged Prime Minister Shehbaz Sharif to review the proposed new tax regime for retailers, arguing that it would create a double taxation, as well as, burden on the business community. In an urgent letter addressed to the prime minister, Mir questioned the need for introducing a new tax system when taxes are already being collected from wholesalers and retailers at source under Sections 236G and 236H of the Income Tax Ordinance. He said the proposed measure would effectively amount to double taxation and place an additional burden on businesses already struggling under challenging economic conditions. Mir noted that provincial governments are actively collecting various taxes and levies, while the federal government and the Federal Board of Revenue (FBR) are simultaneously intensifying efforts to increase tax revenues. He said that in wake of the FBR’s difficulties to achieve its revenue targets, pressure on taxpayers continues to rise. He warned that the introduction of a new tax, particularly one that duplicates existing tax mechanisms, would increase uncertainty and difficulties for traders and retailers, especially small businesses. He said the proposed system would impose an unnecessary financial burden on the trading community and amount to an unfair measure against small retailers. He called on the prime minister to reconsider the proposed tax regime and take steps to protect traders from additional financial pressure. Recently, Minister of State for Finance Bilal Azhar Kayani met a delegation of the Markazi Tanzeem Tajran Pakistan, led by its President Kashif Chaudhry to discuss simplified tax scheme in the upcoming budget 2026-27. Muhammad Naeem Mir, chief coordinator of Tajir Dost Scheme refused to join the said in meeting in protest. Talking to Business Recorder, Naeem said that there is no need to launch another registration scheme for shopkeepers/ traders after failure of Tajir Dost Scheme. There is no need for any new scheme after introduction of Section 236G and Section 236H in the Income Tax Ordinance 2001. The advance tax collected on purchases (Section 236G) was reduced from 2 percent (non-filer rate) to 0.1 percent (filer rate). This tax under Section 236G is applicable on purchases made by distributors/ dealers/ wholesalers from manufacturers/ commercial importers. The advance tax collected on sales to retailers by manufacturers/ commercial importers/ distributors under (Section 236H) was reduced from 2.5 percent (non-filer) to 0.5 percent (filer). Thus, non-filers have to pay tax of 2 percent and 2.5 percent under section 236G and 236H respectively, Naeem Mir said. The FBR must enforce return filing from un-registered retailers with the help of data of Section 236G and Section 236H. The revenue potential from Section 236G and Section 236H is much higher as compared to the estimates of Rs 50 billion from the failed Tajir Dost Scheme. Therefore, there is no need for any new scheme in coming budget, he said. There should be no additional tax on traders and shopkeepers, he said. The new scheme would start a new confrontation between the tax officials and traders in the field formations which should be stopped. According to him, traders and shopkeepers are already paying due amount of taxes along with their income tax returns. Traders should not be over-burdened, but should contribute due amount of taxes in the national kitty. Copyright Business Recorder, 2026
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