ICCI calls for revising minimum tax under fixed tax regime for small traders

Islamabad, July 25, 2022 (PPI-OT):Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce and Industry said that the new fixed tax regime introduced by the FBR for the collection of sales tax with monthly electricity bills has created great concerns in the small traders as it would force them to pay minimum sales tax of Rs.3000 even though their electricity bill amount is less than Rs.1000 and urged that FBR should revise the minimum slab of sales tax in consultation with ICCI to save the small traders from unnecessary tax burden.

Muhammad Shakeel Munir said that FBR was previously collecting sales tax in monthly electricity bills at the rate of 5% and 7.5% of the amount of bill, however, vide Circular No.09 of 2022-23, the tax authority has decided to charge minimum tax on monthly electricity bills of retailers @ Rs.3000 for monthly bill up to Rs.30,000, which is very discriminatory and will put extra tax burden on those small traders who are consuming less units of electricity bill. Therefore, he urged that the Finance Minister and FBR Chairman should immediately engage ICCI into consultation to make the minimum tax proportional to the units of electricity bill so that it could be affordable for small traders.

Jamshaid Akhtar Sheikh Senior Vice President and Muhammad Faheem Khan Vice President ICCI said that the Finance Minister and Chairman FBR had agreed to decide the final slabs of fixed tax regime in consultation with ICCI and other trade bodies, but the tax slabs have been finalized without taking them on board, which is contrary to the assurance given. They stressed that the Finance Minister should immediately hold a meeting with ICCI and other trade bodies to sort out this important issue with mutual consultation so that small traders should be saved from extra financial burden.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk