In a significant development, the government has agreed to amend the Tajir Dost Scheme after nationwide protests by traders against the imposition of additional taxes and the scheme’s controversial provisions. This decision comes in the wake of mounting pressure from the business community, which has expressed strong opposition to the scheme.
Nationwide Protests Lead to Government Action
The announcement to revise the Tajir Dost Scheme follows a call for a nationwide shutter-down strike by major trade organizations. The Markazi Anjuman Tajiran and Tanzeem-e-Tajiran-e-Pakistan, two of the country’s largest trade bodies, have been at the forefront of the protests, refusing to negotiate with the Federal Board of Revenue (FBR) unless changes made to the scheme. The protests have also been fuel by the rising electricity bills, adding to the traders’ grievances.
Key Amendments Proposed
According to sources within the FBR, the government is preparing to issue a notification to amend the scheme’s provisions. The proposed changes expected to address the concerns of the trading community and ease the financial burden on small businesses. Among the key amendments under consideration are:
- Simplification of Income Tax Returns: The government is planning to simplify the income tax return form, making it more accessible by issuing it in an easy-to-understand Urdu language format.
- Exemption for Small Traders: A significant change being consider the exemption of businesses with an annual turnover of up to Rs100 million from the sales tax. This move aims to provide relief to small traders who have been particularly vocal in their opposition to the current scheme.
- Amendment to Income Tax Table: The FBR also expected to amend the income tax table for traders, potentially reducing the tax burden on the business community.
Government’s Response to Traders’ Concerns
The government’s willingness to amend the Tajir Dost Scheme seen as a direct response to the widespread unrest among traders. By addressing the issues raised by the business community, the government hopes to prevent further protests and ensure smoother relations with traders across the country.
The revised scheme expected to be more favorable to small businesses, helping to mitigate some of the challenges they face under the current system.
The government’s decision to amend the Tajir Dost Scheme highlights the power of collective action by the business community. As the amendments finalized and implemented, it remains to be seen how effectively they will address the concerns of traders and whether they will lead to a resolution of the ongoing protests.
