ICCI Urges For Revising Minimum Tax For Small Traders

ISLAMABAD:Islamabad Chamber of Commerce and Industry on Monday said that the new fixed tax regime introduced by the FBR for the collection of sales tax with monthly electricity bills has created concerns in the small traders as it would force them to pay minimum sales tax of Rs3,000 even though their electricity bill amount is less than Rs.1,000.

They urged the Federal Board of Revenue(FBR) to revise the minimum slab of sales tax in consultation with ICCI to save the small traders from unnecessary tax burden.  Muhammad Shakeel Munir President ICCI 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.3, 000 for monthly bill up to Rs.

30,000, which is discriminatory and will put extra tax burden on those small traders who were consuming less units of electricity bill.

Therefore, he urged the finance minister and the FBR chairman to 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 the finance minister and the 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 had been finalized without taking them on board.

They urged the finance minister to 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 .