President of Pakistan Business Forum (PBF) Karachi Chapter, Malik Khuda Bakhsh, today urged the government to introduce a fixed tax regime for traders in the upcoming budget, stating that the existing trader-friendly schemes have not yielded the desired results.
Speaking to journalists, Bakhsh mentioned that PBF has proposed a monthly fixed tax of Rs20,000 for large retailers, Rs10,000 for small retailers, and Rs5,000 for shopkeepers in villages and small towns.
According to a PBF statement, he suggested that fixed tax collection could be facilitated through electricity bills and that traders should not face further inquiries after paying the fixed tax.
If the economy is to be stabilized, a fixed tax regime should be implemented without pressure, says PBF Karachi president. He emphasized that while the government has supported traders for 77 years, it must now take tax collection seriously, as financial resources cannot be expanded without revenue from traders.
He highlighted that wholesale and retail trade contributes 18.1% to the GDP but accounts for only 2% of direct taxes, whereas the industrial sector, contributing 18.4% to GDP, provides 40% of total tax revenue. He stressed that Pakistan’s economy requires a minimum annual tax collection of Rs15 trillion to remain stable.