HCCI Chairman Urges Federal Government To Remove Fixed Retail Tax On Electricity Bills

Hyderabad Chamber of Commerce and Industry President Adeel Siddiqui has urged the Federal Finance Minister to withdraw the decision to recoup fixed tax on retailers through the electricity bills of small non-traders. recorded.

In a statement released here on Tuesday, he said tax was still collected on annual income worldwide, but was collected here through invoices before the income was realized. He called such a takeover of small traders a great injustice.

He drew the finance minister’s attention to the fact that this fixed tax on retailers was meant for unregistered traders while registered traders were paying billions of rupees in income and sales taxes every year. He said fixing the retail sales tax was good planning, but how it was introduced was questionable.

He said that now taxpaying businessmen warehouses were being billed as well as a fixed tax on retailers and that fell under the category of double taxation. Even warehouses and closed shops were required to pay the tax, which was totally unfair, he said, adding that it was causing unrest among traders.

The president of the HCCI specified that this tax appeared in the invoices of June whereas the tax year starts from July. He urged the government to understand the traders’ problems or else they would be knocking on the door of justice.

He said that under the 2022-23 federal budget, small merchants would be required to pay this fixed retail tax starting July 1 through their electricity bills each month.

He called for wider consultation with the Federation of Pakistan Chambers of Commerce and Industry and representatives of the business community to reduce the tax percentage and fixed tax on retailers should be clawed back every year.

He said the clawback procedure should also be changed, adding that power companies had their own ax to grind and consumers did not trust them.
companies due to their detection and overcharging.

He further stated that due to the detection, the percentage of the tax will increase in the electricity bills, which amounts to enmity with the merchants. He said merchants without the capacity to pay the fixed retail sales tax would be without power due to the disconnection.

He stressed that the government should take collective measures to revive the economy. He said that higher prices for electricity, gas and petroleum products had
weakens small and medium-sized enterprises (SMEs) and their closure would lead to massive unemployment.

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