RAWALPINDI: The Grocery Merchants Association has firmly rejected the government's proposed annual fixed tax of Rs25,000 on small traders. The association deemed the tax unacceptable, especially when combined with a one per cent turnover tax, and has threatened to launch a nationwide protest against the measure.
Association's Stance on the Tax
Central Grocery Merchants Association Divisional President Saleem Pervaiz Butt stated that the fixed tax, along with the one per cent turnover tax, would push the total tax burden to Rs500,000 per year. He emphasized that shopkeepers' profit margins on essential grocery items such as flour, sugar, ghee, and cooking oil range between Rs5 and Rs15 per year, making the Rs500,000 tax completely unfeasible for small businesses.
Concerns Over Future Tax Increases
Butt warned that if the fixed tax of Rs25,000 and the one per cent turnover tax are implemented, the government might increase the fixed tax to Rs50,000 and the turnover tax to three per cent in the following year. This, he argued, would spell disaster for small shopkeepers across the country.
Conditional Acceptance
The association expressed willingness to accept the Rs25,000 fixed tax if the government rolls back the one per cent turnover tax. However, if the government does not comply, the Grocery Merchants Association is prepared to organize nationwide protests to oppose the taxation policy.
