FinMin Aurangzeb refuses 'tax exemption' for businessmen

Finance Minister Muhammad Aurangzeb on Tuesday refused to give tax exemption to traders despite their strike against inflated electricity bills and over-loaded taxes.

During the strike on August 28, the business community urged the government to withdraw the Tajir Dost Scheme, additional taxes, and provide relief in electricity bills.

Following the protest, Chairman Federal Board of Revenue (FBR), Rashid Mehmood, expressed willingness to resolve the issue.

“We are ready to make amendments to the SRO to address their concerns,” he said.

However, FinMin Aurangzeb believed tax on traders could not be withdrawn, but “we have no objections with targeted subsidy,”

“Subsidy could be given to deserving traders under the Benazir Income Support Programme,” he said while media talk in Islamabad.

According to Aurangzeb, the meetings with Chief Ministers in all provinces are set to be held this week, and the government is mulling on implementing a uniform policy nationwide.

Secretary Finance is also in contact with provincial secretaries and the national financial agreement will be prepared soon, Aurangzeb added.

“The FBR’s estimated target of tax returns will be completed from digitalisation and its enforcement,” he said.

He cleared that no recommendations related to withholding tax were being considered.

Aurangzeb expressed readiness to accept valid demands of the business community and to facilitate them.

However, he added that the tax withdrawal means to deliver the burden to manufacturers and the salaried class.