Punjab govt, traders at loggerheads over tax

RAWALPINDI: Traders in the cantonment areas and the Punjab Revenue Authority (PRA) are at loggerheads over the collection of taxes on services.

The Punjab government had imposed taxes on services such as hotels, restaurants in the current budget. But the traders are of the view that the provincial government cannot impose any tax in the cantonment areas which come under the jurisdiction of the federal government.

The Rawalpindi Cantonment Traders Association and the Rawalpindi District Traders Association have called a meeting on Wednesday (today) to chalk out a plan to announce a strike.

Cantonment Traders Association president, Zafar Qadri, told Dawn that under 1924 cantonment act all taxes would be collected by the Rawalpindi Cantonment Board on behalf of the federal government.

“PRA officials should inform the traders about the taxes before issuing them notices as the latter are not aware of the collection of sales tax and services tax by the provincial government after the 18th amendment,” said Rawalpindi Traders Association president Shahid Ghafoor Paracha.

When contacted, Assistant Commissioner Saddar Tasleem Ali Khan said the PRA was collecting services tax in all parts of the province, including the cantonment areas.

He said the Punjab government was providing all the civic facilities in these areas and was collecting only services tax and sales tax on different items. He said PRA was working as per its mandate given to it by the government.