Karachi, August 17, 2024 – The Karachi Chamber of Commerce and Industry (KCCI) has called on the Federal Board of Revenue (FBR) to defer the implementation of the Tajir Dost Scheme, a tax initiative aimed at small traders.
The KCCI has also demanded the immediate withdrawal of notices issued to shopkeepers under this scheme, which they claim imposes an unaffordable tax burden.
In a statement, KCCI President Iftikhar Ahmed Sheikh voiced his concerns over the scheme, stating that small shopkeepers and traders are being served notices requiring them to pay a hefty tax of Rs 60,000 per month. Sheikh emphasized that such a tax is beyond the financial means of most small traders and could potentially force many to shut down their businesses.
“It seems that the tax officials are setting the Tajir Dost Scheme up for failure by issuing these notices to everyone, including both registered and unregistered individuals,” Sheikh remarked. He further pointed out that, contrary to initial assurances that the tax for small shopkeepers would not exceed Rs 1,000 to Rs 1,200, the current demands have left shopkeepers reeling.
Sheikh stressed the need for the scheme to be revisited in consultation with all stakeholders. He highlighted that small traders are already struggling to survive amidst rising inflation and exorbitant utility costs, which have significantly eroded their profit margins. “In this scenario, demanding a tax of Rs 60,000 per month will leave shopkeepers with no option but to close their shops permanently, which will have severe repercussions for both the public and the economy,” he warned.
The KCCI President also criticized the indiscriminate issuance of tax notices to shopkeepers in various markets, irrespective of whether they are registered or not, leading to widespread anxiety among traders. “We strongly oppose the unjust imposition of such a hefty tax, which should not be applied to either registered or unregistered traders,” he asserted.
In his appeal, Sheikh called on Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to acknowledge the severe hardships faced by shopkeepers due to inflation and weakened consumer purchasing power. He urged the government to halt the FBR’s demands for the unrealistic tax immediately.
Iftikhar Sheikh reiterated the KCCI’s firm rejection of the Tajir Dost Scheme in its current form, labeling it as anything but trader-friendly. He called for the scheme’s postponement until it can be revised in a manner that genuinely supports the small trading community, ensuring its long-term viability.
