New Delhi: Inflation may strike again in Pakistan. This is as the traders of Pakistan’s major city Rawalpindi have become angry due to a decision of the government. If the government sticks to its decision then the prices of things like milk and bread may skyrocket in the coming days. Inflation will increase so much that food items will become beyond the reach of common people. Actually, the whole matter is related to professional tax. The Times of India, quoting Express Tribune news, has reported that the Pakistan government has announced an increase in professional tax for business in Rawalpindi division. This has spread anger among traders.
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How much was the tax increased?
Professional tax bills ranging from 50 thousand to 2 lakh Pakistani rupees (about 15 thousand to 61 thousand rupees in Indian currency) have been sent to the shopkeepers. After receiving these bills, trade unions have protested.
Markazi Anjuman Tajran,the central body of Pakistani traders,has asked shopkeepers not to pay these increased tax bills. The central body said that this decision of the government is very worrying for the milk and curd sellers in Rawalpindi, who will now have to pay an annual tax of two lakh Pakistani rupees. Markazi Anjuman Tajran President Sharjeel Mir said that earlier the professional tax was between 1500 to 3000 Pakistani rupees annually. Now it has been increased tremendously.
The grocery store was also burdened
According to the report of Express Tribune, many small businesses including grocery stores, salons, welders, general stores will now have to pay tax ranging from Rs 30 thousand to Rs 50 thousand annually.
Question on convenience of government officials
Traders accused government officials of exploiting small shopkeepers and continuing their luxury lifestyle.Questioning the facilities provided to government officials, Sharjeel Mir said, ‘Rather of burdening us, thay shoudl buy luxury vehicles and freebies and cut down on their lavish expenses.’
The effect can be seen on a large scale
The effect of this increased tax in Rawalpindi may be visible across Pakistan in the coming days. To compensate for the increased tax, shopkeepers will sell things at higher prices, which will increase inflation.
Tajran plans to meet tax authorities to demand the reversal of the decision. Mir has warned that if the old rates are not restored then they will start a strike across Punjab.
– how can consumers mitigate the impact of rising prices due to increased professional tax in their daily lives?
Interview: The Implications of Increased Professional Tax in Rawalpindi with Economic Expert Dr. Aisha Rahman
Time.news Editor: Welcome, Dr. Rahman. Thank you for joining us today. Recent news has highlighted a troubling increase in professional tax for shopkeepers in Rawalpindi, and traders are raising their voices against this decision. Can you explain the implications of this tax increase on everyday prices, particularly for essential items like milk and bread?
Dr. Aisha Rahman: Thank you for having me. The decision to increase professional tax bills considerably—from previously manageable amounts to figures between 50,000 and 200,000 Pakistani rupees—will undeniably impact the cost of living. As traders face higher operational costs, they will likely pass these costs onto consumers. This will lead to a sharp rise in prices for staple goods, pushing them beyond the reach of average citizens. If this trend continues, we could see an acute spike in overall inflation.
Time.news Editor: It sounds grim. Traders have expressed anger and even staged protests. How are trade unions responding to this situation?
Dr. Aisha Rahman: The Markazi Anjuman Tajran, which represents traders, is proactive in opposing this tax hike. They have urged shopkeepers not to pay the increased bills and are planning to meet with tax authorities to demand a reversal. Their stance underscores the gravity of the situation, as they argue that such burdens on small businesses exacerbate their financial struggles. Should negotiations fail, a strike across Punjab would not only disrupt the flow of goods but also further strain already strained consumer budgets.
Time.news Editor: The increase in operational costs for small businesses seems meaningful. What does this mean for local employment and small enterprises in Rawalpindi?
Dr. aisha Rahman: This tax hike could critically affect the sustainability of small enterprises. many of these businesses rely on razor-thin profit margins. If shopkeepers are forced to close due to increased operating costs, it may lead to significant job losses. Moreover, if prices rise without a corresponding increase in wages, it will further weaken the economy, leading to more distress within the community.
Time.news Editor: Sharjeel Mir, President of the Markazi anjuman Tajran, has criticized the government, pointing out the lavish lifestyles of officials.What should be the government’s approach to balancing tax revenue needs with the livelihood of small business owners?
Dr. Aisha Rahman: This is a critical question. The government must find a balanced approach to taxation that considers the economic realities of small business owners. While taxes are essential for funding public services, there needs to be a more gradual and thoughtful implementation of tax increases—especially in times of economic hardship. Implementing supportive measures, such as tax rebates or subsidies, could alleviate burdens on small businesses and allow them to thrive.
Time.news Editor: Given the potential rise in inflation as a result of these tax increases, what practical advice would you give to consumers in this challenging economic habitat?
Dr. Aisha Rahman: Consumers should prepare for potential price increases and consider budgeting carefully.Focusing on essential purchases and being open to exploring local markets could help mitigate some costs. Additionally, engaging with community cooperatives and supporting local businesses can play a vital role in sustaining the economy during this period of uncertainty.
Time.news Editor: Thank you, Dr. Rahman. Your insights highlight the complex dynamics at play with the recent tax changes in Rawalpindi. It will be engaging to see how both traders and the government navigate this situation in the coming weeks.
Dr. Aisha Rahman: Thank you for having me. It will indeed be crucial to observe the developments. Hopefully, a constructive dialogue can pave the way for a more sustainable solution for all parties involved.