This was stated by All Pakistan Traders Union (APTU) president Ajmal Baloch while taking to Business Recorder here on Friday. He said, "We have decided to defer the strike call owing to prevailing situation in the country till Sep 30 after Federal Board of Revenue (FBR) assured us that it would resolve the issue of fixed tax for small traders before the end of August 2019 and no adverse action would be taken against those not complying with the CNIC condition till end of the first quarter of this current fiscal year."
"We will have a meeting with the FBR on this issue much before the end-August to see how the things are moving and whether the government is sincere in resolving our genuine issues," he further said. He added that tax authorities have been stating that small traders and shopkeepers are not paying income tax, which is factually inaccurate because 10 percent fixed tax on their income in addition to 7.5 percent sales tax is collected from all shopkeepers and other traders on their commercial electricity meters.
Bloch said the traders would devise their future course of action including countrywide strike call after Sep 30. He added that that FBR has issued notification with regard to not taking any action against the traders on the condition of provision of CNIC till Sep 30. The CNIC condition as per Finance Act 2019 would remain intact; however, no adverse action would be taken against traders for not complying with the condition.
The purpose of CNIC requirement was to get information of turnover/business volume of unregistered persons so that their actual tax liability could be determined.
On Aug 8, the FBR and small traders reached an agreement that the tax machinery would take no adverse action against them on CNIC condition till Sep 30 under the Income Tax Ordinance 2001 and Sales Tax Act, 1990 and there would be discussion between FBR and bodies of the traders for the finalisation of scheme for small shopkeepers for which drafts have been furnished by various trade bodies which will be taken into consideration by the FBR.