KARACHI: Small traders have strongly criticized the government’s newly announced fixed tax scheme, calling it unfair and designed to benefit large businesses at the expense of struggling shopkeepers.
Mehmood Hamid, President of the All Pakistan Organisation of Small Traders and Cottage Industries Karachi, said the policy reflects what he described as the government’s inconsistent approach to taxation. According to him, authorities are using the label of “small traders” to extend relief to major businesses while placing additional pressure on genuine small-scale merchants.
Hamid argued that businesses with annual turnovers of Rs200 million to Rs250 million cannot be considered small traders. He noted that such enterprises often operate multiple branches and use Point of Sale (POS) systems, characteristics typically associated with larger commercial operations.
He also questioned the proposal allowing traders who pay a fixed tax of Rs25,000 to avoid POS requirements, claiming it could provide significant benefits to tax evaders while reducing transparency.
While emphasizing that traders are willing to pay taxes, Hamid said government policies should target tax avoidance rather than burden honest businesses. He warned that the scheme could further erode trust between traders and the state.
