Islamabad: The trading community in Islamabad has made a significant proposal to the Federal Board of Revenue (FBR), advocating for a drastic reduction in their fixed monthly tax rate from the current PKR 30,000-60,000 to PKR 5,000. This request comes amid ongoing discussions on the taxation policies affecting small and medium-sized enterprises across the country.

According to Zameen.Com, the traders, through their representatives, have suggested a new tax collection ceiling of PKR 15,000 per quarter, emphasizing that individual monthly contributions should not surpass PKR 5,000. This proposal aims to alleviate the financial burden on shop owners operating in diverse market environments. In response, the FBR has encouraged traders to offer alternative strategies related to the advance tax valuation table, although insiders note that slashing the tax rate as proposed could be challenging.

Naeem Mir, Chief Coordinator of the Tajir Dost Scheme, addressed these issues at the FBR House, outlining the difficulties in tax collection within the wholesale and retail sectors. He recounted the unofficial tax amnesties that traders have enjoyed over the past 77 years and underscored the government’s renewed commitment to enforcing tax compliance. Mir pointed out that eliminating the prevalent culture of tax evasion is essential for bolstering state finances.

Moreover, Mir criticized attempts to politicize the Tajir Dost Scheme, asserting that ongoing negotiations between the FBR and the traders are expected to yield a mutually agreeable solution soon. He also called on non-filer traders to integrate into the formal tax framework via the Asaan Tax return form, highlighting the importance of their participation for the country’s fiscal health.