Free ride

THE federal and provincial governments have extended what appear to be major concessions to the retail sector ahead of Eidul Azha, temporarily lifting restrictions on market timings to allow buyers and sellers to complete their preparations more comfortably ahead of the festival. It bears highlighting that the economic risks that necessitated formal regulations for early closure of markets have not diminished: regional fuel stockpiles are tightening, and with shipping through the Strait of Hormuz still disrupted without any clear signs of resumption, there is a logical imperative to conserve as much energy as possible through reasonable means. There is no question, therefore, that the decisions taken to allow markets to temporarily operate ‘as normal’ are concessions for the trading class, which had likely been lobbying hard for a reprieve at least for the festive Eid period, when spending on discretionary items usually picks up. Now that a concession has been secured, however, it is hoped that the retail sector will remember this as a ‘favour’ that ought to be returned. It may be recalled here that the retail sector’s contribution to direct taxes collected by the FBR remains disproportionately low, considering its large contribution to the GDP.

Indeed, there is much resentment among salaried individuals over the retail sector being treated as the ‘favourite child’ by successive governments, even though salaried individuals contribute many times more to the national kitty than retailers. This discussion is likely to be taken up again as the federal government finalises its budget for the next fiscal year. The truth is that citizens whose taxes are deducted at source continue to be squeezed dry year after year, while others, including many who operate in the retail sector, are still able to dodge the tax authorities by operating off the books, insisting on cash transactions and, in general, refusing to document their activities. It has been observed in the past that it is often the same representatives lobbying for official favours who have also been behind efforts to undermine or resist government attempts to document the sector better. This should not be the case. If retailers expect the government to show leniency in times like these, they should also be quick to ensure compliance when it asks them to pay their dues. They should not get used to having their cake and eating it too.

Published in Dawn, May 19th, 2026

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