Lahore stationery businesses are up in arms against the recent changes to the sales tax system implemented in the Finance Act 2024. A delegation led by Khalid Pervez met with the Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar to voice their concerns.
Impact on Businesses and Education Costs:
The traders argue that taxing educational materials like writing ink, exercise books, and pencils will significantly increase business costs and, ultimately, the prices of these essential items. This will disproportionately burden students and parents struggling with rising educational expenses.
Threatened Business Closures:
The delegation emphasized that the new taxes come at a time when businesses are already facing declining sales. They warn that these additional costs could force many traders to shut down, further impacting the local economy.
Changes in the Sales Tax System:
The Finance Act 2024 removes previous exemptions for various stationery items, subjecting them to a 10% sales tax. Additionally, sections 236G and 236H impose further tax burdens. Tax deduction rates also vary based on filer status.
LCCI’s Support and Call to Action:
The LCCI President, Kashif Anwar, expressed solidarity with the traders and pledged to advocate for them with the government. He emphasized the importance of facilitating education and economic development. Anwar urged the government to reconsider the tax on educational supplies and prioritize making education more affordable.
Seeking Relief Amidst Inflation:
Highlighting the existing economic pressure due to inflation, the LCCI President called for a review of these taxes. He aims to provide some relief to the struggling business community during these challenging times. The LCCI assures traders that their voices will be heard on all relevant platforms.
This article highlights the concerns of Lahore stationery businesses regarding the new sales tax on educational materials. It emphasizes the potential negative impact on both businesses and educational accessibility.
