Traders ‘call off’ strike after deal with FBR

ISLAMABAD: The Federal Board of Revenue (FBR) on Sunday explained that the imposition of withholding tax through electricity bills would be charged from professionals who would be undertaking their assignments while sitting at their homes.

It has been imposed through a Presidential Ordinance for the purpose of broadening the tax base. The enhanced withholding tax slapped through the Presidential Ordinance and collected through electricity bills will not be applicable to commercial consumers.

“The Point of Sale (POS) integration with the FBR, registration into Sales Tax, and imposition of enhanced withholding tax have nothing to do with the small traders. We have given assurances to small traders and they agreed to call off their scheduled protest on September 27 in front of the Ministry of Finance,” FBR’s Member Inland Revenue (IR) Operation Qaiser Iqbal said, along with traders’ leaders, here at the FBR’s headquarters on Sunday afternoon.

However, it was quite awkward that the FBR team did not seem ready to take any questions from the media. They took only a couple of questions and then the FBR’s Member IR Operation did not give answers to any other questions after the briefing.

A group of small traders known as Markazi Tanzeem-e-Tajiran Pakistan announced to call off their sit-ins and protests on September 27 and said they had reached an agreement on all points with the FBR. President of Markazi Tanzeem-e-Tarjan Kashif Chaudhry stated that they reached an amicable solution on all points with the FBR and were postponing their protest.

However, the All Pakistan Anjuman-e-Tajiran (APAT) announced separately that they did not reach an agreement with the FBR and they would be protesting in front of the FBR on September 29, 2021, in accordance with their original plan.

APAT Chairman Ajmal Baloch told The News that there was no change in their planned protest and traders from across the country would gather in front of the FBR office to register their protest. He said that the FBR was converted into a police department by granting it sweeping powers that are totally unacceptable to the traders community.

During the press conference, the FBR Member IR Operations announced that (i) the point of sale ( POS) is not related to the small traders; (ii) the change in the rate of advance tax on electricity bill as introduced in the Tax Laws (Third Amendment) Ordinance-2021 will not affect small traders; (iii) no forced sales tax registration of small traders and (iv) the sales tax on electricity consumed by professionals will not affect commercial consumers of electricity.

He said that all confusions and misunderstandings of small traders on the Tax Laws (Third Amendment) Ordinance were removed amicably. “The Tax Laws (Third Amendment) Ordinance-2021 has nothing to do with the small traders,” he added.

The FBR officials informed the media that a delegation of the elected leadership of small traders, led by Kashif Chaudhry, Central President Markazi Tanzeem-e-Tajiran, Pakistan had been in contact with FBR for the last few days. The confusions of small traders, especially with reference to Tax Laws (Third Amendment) Ordinance-2021 were addressed on September 26 (Sunday), and the final meeting was held at the FBR HQs where both FBR and elected leadership of Markazi Tanzeem-e-Tajiran, Pakistan successfully concluded discussions where all misunderstandings and confusions pertaining to Tax Laws (Third Amendment) Ordinance-2021 were clarified.

He thanked the elected leadership of the traders’ community for their understanding and cooperation and also assured them that all issues regarding tax laws and any other confusion shall be clarified by mutual discussions, leaving no space for unfounded propaganda or misinformation spread by irresponsible elements on the social media.

Kashif Chaudhry, Central President of Markazi Tanzeem-e-Tajiran, Pakistan, on behalf of all representatives of small traders from all over the country who were also present in the press conference, announced to postpone the protest scheduled for September 27, 2021.