Small traders reject 2 percent tax on turnover

Author: Staff Report

ISLAMABAD: Islamabad Chamber of Small Traders on Tuesday criticised the decision of the government to slap two percent tax on turnover of the retailers in the forthcoming budget, terming it highly discriminatory.

The unjust decision would trigger inflation and protest to meet the fate of tax amnesty scheme launched last year, which failed to attract traders while the government could hardly raise Rs 1 billion, it said.

Traders were already frustrated due to high cost of energy, multiple and irrational taxes and ever-increasing demands of the government officials, therefore they cannot bear more burden, said ICST Patron Shahid Rasheed Butt in a statement.

He said that all efforts to bring traders in the tax net have failed and the latest attempt would also fail, as the sector representing 20 percent of the GDP would not accept tax in presence of larger sectors enjoying tax exemptions.

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