The Grocery Merchants Association has rejected the government’s proposed annual fixed tax of Rs 25,000. The association called the measure unfair for small traders. Moreover, traders opposed the additional one percent turnover tax.
Association leaders warned that they could launch a nationwide protest. They said the combined tax burden would severely affect small businesses. Consequently, merchants urged the government to reconsider the proposal.
Traders Raise Concerns Over Tax Burden
Central Grocery Merchants Association Divisional President Saleem Pervaiz Butt criticized the proposed taxation framework. He stated that the fixed tax and turnover tax would increase annual payments significantly. According to him, some traders could face taxes reaching Rs 500,000 yearly.
Furthermore, Butt explained that grocery retailers earn very limited profits on essential items. He noted that products such as flour, sugar, ghee, and cooking oil generate modest margins. Therefore, many shopkeepers would struggle to meet the proposed tax obligations.
He argued that the policy could damage thousands of small businesses nationwide. As a result, traders fear declining profits and rising operational costs.
Merchants Demand Government Reconsideration
Butt also expressed concerns about future tax increases. He claimed the fixed tax could rise to Rs 50,000 within a year. Additionally, the turnover tax could increase to three percent.
He warned that such increases would create serious difficulties for small retailers. Consequently, many businesses could face financial pressure or closure.
However, Butt offered a possible solution to the dispute. He stated that traders would accept the Rs 25,000 fixed tax alone. In return, the government would need to withdraw the one percent turnover tax.
Meanwhile, merchants continue discussions while awaiting the government’s response. They hope authorities will adopt a more balanced taxation policy.
