Tajir Dost Scheme Changes: Govt Responds to Protests

Tajir Dost Scheme Gets Revamped: Government Responds to Trader Protests

Government bows to trader protests, revises the Tajir Dost Scheme.

This dramatic turn of events has marked a change in the way business is conducted in Pakistan.

Read More: IMF Predicts Huge Increase in Pakistan’s Trade Deficit

Following countrywide protests by traders strongly opposing the provisions of the scheme, especially the imposition of extra taxes on them.

All Over Pakistan, Protests Force Change

The call for a national strike was the breaking point, for which the leading trade organizations, Markazi Anjuman Tajiran and Tanzeem-e-Tajiran-e-Pakistan, refused to hold negotiations with the Federal Board of Revenue unless amendments were made to the scheme.

Furthermore, the rise in electricity bills also added to the intensifying protest as this increased traders’ financial liabilities.

Trader Grievances: Amendments Proposed

According to sources within the FBR, the government is drafting a notification on proposed amendments to the ‘Tajir Dost Scheme’.

The proposed amendments have been a direct consequence of the problematic issues pointed out by the trading community and also aims to minimize the burden on small businesses.

Following paras give the gist of key amendments that are being considered:

It means that the government will simplify the current cumbersome form of the income tax return.

It would also be issued in the Urdu language, which is widely understood, to make it easy for the traders.

• Relieving the Small Traders: Exemption of sales tax for businesses with an annual turnover of up to Rs.100 million is another concession that is likely to be given. It will be a huge relief for the small traders who have been most vocal in opposing the scheme.
• Revision in Income Tax Table: Traders can also expect a revised income tax table. This will presumably mean a decrease in the amount of taxes that the business community has to bear.

Government Reaches Out: Taming the Unrest

The above shows quite clearly that the government is willing to amend the government’s Tajir Dost Scheme, which really means a clear response to the mass discontent amongst its traders.

The government doesn’t want to see more protests and, on the other hand, wants to develop closer coordination with the business community throughout the country.

The revised scheme would be more small business-friendly as a solution to some of the challenges they are in at the moment.

Mass Action Pays Dividend

The revision in the Tajir Dost Scheme on the part of the government resides at the heart of effective collective action by the business community.

However, as the amendments are being finalized and implemented, it remains to be seen how effectively they address the core issues of traders and whether such protests finally die down.

The case illustrates that communication and collaboration between the business community and the government of the country are in dire need of coming about.

The case also reveals the importance in collective action regarding changed policies relevant to the business climate.

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