KARACHI: The government has imposed a sales tax of Rs6,000 per month on commercial electricity meters across the country effective from July 1, but only K-Electric has implemented the Finance Bill 2022 decision causing unrest among the traders in the country’s economic and commercial hub.

As a result, the traders’ associations have been up in the arms for the last two days against K-Electric for sending inflated bills after charging the sales tax.

All Karachi Tajir Ittehad (AKTI) chairman Atiq Mir said traders would start sit-in in front of the KE head office till the removal of Rs6,000 from the bill. “It is highly unjustified to implement the decision only on traders of Karachi.”

Meanwhile, Markaz-i-Anjuman Tajiran Pakistan President Kashif Chaudhry said: “We strongly condemn the imposition of Rs6,000 sales tax in power bills and urge the government to take back the decision.”

Power suppliers in other cities have yet not started charging this tax

When asked about any protests being held in Punjab cities, he said “traders have so far not received the power bills in the big province but we will protest it in case it is implemented.”

All City Tajir Ittehad Association General Secretary Muhammad Ahmed Shamsi said the association held two protests — one at Karim Centre Saddar on Thursday and the second at Jama Clothe M.A. Jinnah Road on Friday. “While the third has been planned at Zoological Garden Chowk on Saturday,” he announced.

Protesting traders at the main arteries of the city have resolved not to pay the inflated bills to K-Electric at any cost, he said.

He said it is unjustified to impose this tax on small traders and shopkeepers since they are not registered in the sales tax. For many, it would be hard to bear an extra Rs72,000 per year.

In case a shop has four meters, then it would be unjustified for the owner to pay Rs6,000 sales tax separately on each bill, Mr Atiq said.

Mr Shamsi said the sales tax of Rs6,000 was implemented on all commercial meters even on godowns or closed shops.

He also expressed surprise as to how a private utility company has been authorised to collect the sales tax, which looks like sheer blackmailing with the traders.

Published in Dawn, July 23rd, 2022