KCCI calls for Tajir Dost scheme suspension

KARACHI: President of the Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Sheikh has expressed concerns over the Tajir Dost scheme. He highlighted that small shopkeepers and traders are being issued notices demanding a substantial monthly tax of Rs60,000, which is unaffordable for many.

Sheikh has requested the Federal Board of Revenue (FBR) to immediately withdraw these notices and delay the implementation of the scheme by at least three months.

In a statement released on Saturday, Sheikh said, “It appears that tax officials are intentionally undermining the Tajir Dost scheme by issuing notices to everyone, regardless of their registration status. Despite promises that small shopkeepers would only face a tax of Rs1,000 to Rs1,200, notices have instead demanded an unmanageable Rs60,000, which many shopkeepers find impossible to pay.” Sheikh emphasized that the Tajir Dost scheme, which currently suffers from significant flaws, needs a thorough review in consultation with all stakeholders. This is crucial to prevent further difficulties for shopkeepers already struggling amid rising inflation.

He further noted that the severe inflation and high utility tariffs have already made it difficult for shopkeepers to sustain their livelihoods. “In such circumstances, demanding an excessively high tax of Rs60,000 per month could force shopkeepers to shut their businesses permanently, exacerbating public and economic problems,” he warned.

Sheikh also pointed out that notices have been issued to shopkeepers across various markets, irrespective of their registration status, causing widespread concern. “We strongly oppose this unjust tax demand, which is inappropriate for both registered and unregistered individuals.”

He appealed to Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to acknowledge the challenges faced by shopkeepers, whose businesses are already struggling due to diminished purchasing power and inflation. Sheikh urged the FBR to halt its demands for such an unrealistic tax.