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Government Faces Backlash Over Professional Tax Surge

In response to the ongoing economic crisis, the government has implemented a significant increase in professional taxes for businesses in the Rawalpindi division, causing widespread anger among traders. Tax notices ranging from Rs50,000 to Rs200,000 have been sent to shopkeepers, triggering protests from trade associations.

The Markazi Anjuman Tajran, a central body representing traders, has urged shopkeepers to resist paying what it calls “unjustified” tax increases. Of particular concern is the hike for milk and yoghurt sellers in upscale areas, who now face an annual tax of Rs200,000.

Small businesses such as grocery stores, barbers, welders, general stores, tent services, and food outlets are now required to pay annual taxes ranging from Rs30,000 to Rs50,000. This marks a sharp contrast to the previous tax rates of Rs1,500 to Rs3,000 annually, which traders claim were manageable.

Sharjeel Mir, president of the Markazi Anjuman Tajran, described the increase as “unbearable,” while Salim Parvez Butt, president of the Kiriana Merchants Association, labeled the Rs200,000 tax on milk vendors as “cruel and absurd.” Butt further remarked, “These vendors sell milk and yoghurt, not drugs.”

Trade leaders accuse the government of unfairly targeting small shopkeepers while maintaining their luxurious lifestyles. “Instead of burdening us, they should reduce their extravagant expenses on luxury vehicles and free utilities,” said Mir.

The Markazi Anjuman Tajran plans to meet with the ETO Professional Tax office to demand a reversal of the tax increase. Mir warned that if the previous rates are not restored, traders will organize a complete strike involving protests and lockouts across Punjab.

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