Business community welcomes fixed tax scheme

RAWALPINDI, Jun 05 (APP): President of the Restaurants, Caterers, Sweets and Bakers Association (RCSBA), Muhammad Farooq Chaudhry, has welcomed the federal government’s newly introduced Fixed Tax Scheme for small traders, describing it as a positive step towards a simpler, more transparent and business-friendly tax system.

In a statement issued on Friday, he said the launch of the scheme after consultations with traders’ representative bodies and market associations was a commendable initiative that would help millions of small business owners overcome the complexities of the existing tax regime and encourage voluntary compliance.

Farooq said the introduction of a one per cent fixed tax rate for businesses with annual sales of up to Rs200 million, along with a simplified one-page tax return form, would provide substantial relief and convenience to the business community.

He also appreciated the proposal allowing adjustment of previously paid withholding taxes, terming it a practical measure that would reduce the tax burden on traders.

He said continued efforts to simplify and enhance transparency in the tax system would not only improve revenue collection but also support the documentation of the national economy.

The RCSBA president stressed the need for continued consultation with traders’ organisations and sectoral representatives in the formulation of future tax policies to ensure broader acceptance and effective implementation.

He praised Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani for their commitment to tax reforms and efforts to make tax rates fairer and more equitable.

Chaudhry expressed hope that the scheme would improve the business environment and encourage investment and economic activity across the country.