TAX NEWS - JUNE 2010

Pakistan Tax: Tax exemption on daily use items not enough: traders

The traders of the twin cities of Rawalpindi and Islamabad Sunday rejected the budget 2010-11 terming the tax exemption on food items a trick to avoid criticism on increasing price hike.

They were of the view that the government had failed to compensate the traders and commoners equally hit by inflation during the past two years.

Talking to Daily Times, Rawalpindi Markazi Anjuman Tajran President Shahid Ghafoor Paracha said that the increase in General Sale Tax (GST) was unjustified and it would further burden the masses. The increase in GST should be reversed, he demanded.

Commenting on delay in the implementation of Value Added Tax (VAT), Paracha said though the government had exempted health, education and food items from tax, the prices of rest of daily use items would further go up. "The trading community across the country will resist VAT," he warned.

Kashif Chaudhry, organizing secretary, Traders Action Committee (TAC) said Pakistan People's Party (PPP) led-government presented this budget when the country was facing worst economic situation.

It is a good sign that government has withheld the implementation of VAT for the time being, he added.

He said if government introduced VAT like tax collection system in the country then traders would have no option but go for countrywide protest movement.

Government should have resolve energy crisis, as daylong load shedding hit hard traders and common man, he said. However, he lauded the government decision to increase 50 percent salaries of government employees.