we will not shy away from negotiations, but we will not succumb to pressure, says Rana Ihsan Afzal Khan
KARACHI, LAHORE, ISLAMABAD: Rana Ihsan Afzal Khan, Coordinator to Prime Minister Shehbaz Sharif, has declared that the federal government will not yield to pressure from traders, asserting that retailers must be brought into the tax net. In a statement released on Wednesday, Ihsan Afzal stated, “We will not shy away from negotiations, but we will not succumb to the traders’ pressure. If traders believe we are making a mistake, we are open to discussions.”
He further mentioned that Prime Minister Shehbaz Sharif intends to restructure the Federal Board of Revenue (FBR), with a particular emphasis on incorporating the retail sector into the tax system.
It is worth noting that a nationwide strike is currently being observed by traders across Pakistan in protest against the recent hike in electricity bills and the imposition of new taxes. The strike, supported by various trader associations as well as Jamaat-e-Islami, has resulted in the closure of business centers in major cities, including Karachi, Lahore, and Islamabad.
Meanwhile, sources within the FBR indicated that the Federal Board of Revenue is prepared to consider adjustments to the tax scheme in response to traders’ concerns about tax collection. According to FBR insiders, if traders reach an agreement, an amendment note could be issued immediately. The draft proposal includes provisions to exempt small traders from certain taxes and to simplify the income tax return form, making it available in easy-to-understand Urdu. Additionally, there is a proposal to exempt annual turnovers of up to Rs100 million from sales tax.
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