Traders reject advance income tax collection

PESHAWAR: Traders on Saturday rejected the Federal Board of Revenue (FBR) scheme of advance income tax collection and termed it anti-businesses.

Tanzeem-e-Tajiran Khyber Pakhtunkhwa, led by association president Malik Mehr Elahi, convened a meeting to discuss the FBR scheme for income tax collection from traders.

The meeting rejected the statutory regulatory orders after labeling the scheme as anti-trader.

The traders criticized the FBR, accusing it of launching schemes detrimental to businesses. They claimed the FBR had deceived them and vowed not to accept the advance income tax.

The traders argued that income tax should be levied solely on income and opposed any other formula. They pointed out that they were already paying a 10 percent advance income tax through electricity bills.

“Nowhere in the world is income tax collected twice,” Malik Mehr Elahi stated, asserting that they would not pay the tax twice regardless of the government’s decisions. The traders lamented the impact of the government’s irrational agreements with Independent Power Producers, which had resulted in some of the highest electricity costs in the region. They accused the government and officials of being unwilling to sacrifice their luxuries, instead burdening traders and ordinary citizens.

The traders demanded the government end the provision of free electricity, gas, and petroleum to all government officials, ministries and departments.

They emphasized that the current system of governance was unsustainable and that the only solution was to eliminate the culture of transferring the burden to the public.

The traders called for the cessation of luxury vehicles use by government officials, including the Prime Minister, and suggested that government departments be directed to use small cars. All other benefits should be withdrawn immediately if the government is serious about reviving the country’s economy.

Furthermore, the traders urged the government to lift restrictions on the real estate sector and withdraw the advance tax on medicines to reduce healthcare costs. They argued that tax on medicines had made healthcare unaffordable for ordinary citizens.

The traders also highlighted the contradiction in the government’s approach, noting that while it seeks foreign investment, but simultaneously discourages local investors. They pointed out that businesses were closing daily, contributing to rising unemployment.

They warned of a shutdown strike if the government did not withdraw the tax valuation table, vowing to resist any FBR actions against traders.