Pakistani Traders Demand Electricity Tariff Cuts and Simplified Taxes Before Budget 2026
Pakistan's Central Organization of Traders demanded electricity tariff cuts, abolition of the super tax, and a simplified one-page Urdu tax return form ahead of the upcoming federal budget. The demands were presented at a joint press conference in Islamabad by trader leaders from all four provinces, with high energy costs cited as a primary driver of business distress.
Pakistan's Central Organization of Traders on Friday called on the government to slash electricity tariffs, reduce sales tax to a single-digit rate, and introduce a one-page Urdu tax return form for small and medium retailers ahead of the upcoming federal budget. The demands were presented at a press conference in Islamabad by a coalition of trader leaders from Punjab, Sindh, Khyber Pakhtunkhwa, and Karachi.
Key Demands Affecting the Energy and Business Sectors
Kashif Chaudhry, President of Pakistan's Central Organization of Traders, outlined a wide-ranging set of demands that place electricity tariff relief at the centre of the business community's budget expectations. Alongside tariff cuts, traders called for reductions in petroleum prices and lower Pakistan Telecommunication Authority (PTA) taxes on mobile phones.
- Immediate reduction in electricity tariffs for commercial and industrial consumers
- Sales tax brought down to a single-digit percentage
- Abolition of the 5.1 percent minimum turnover tax
- Immediate withdrawal of the super tax on businesses
- Interest rate reductions to ease financing costs
- Lower petroleum prices to reduce operational overheads
Chaudhry argued that high electricity tariffs, which have risen sharply over the past two years under International Monetary Fund (IMF)-linked cost-recovery adjustments, are a primary driver of business closures and reduced commercial activity across the country.
Simplified Tax Scheme for Small Traders
A central proposal put forward at the press conference is a simplified tax scheme for traders with an annual turnover of up to Rs. 200 million. Under the proposed framework, both new and existing tax filers would have the option to join the scheme voluntarily. Traders also demanded a one-page tax return form printed in Urdu, which they say would dramatically improve compliance among small shopkeepers who struggle with complex English-language documentation.
The Federal Board of Revenue (FBR) was urged to make any simplified scheme a genuine success rather than a paper exercise. Chaudhry specifically called for restrictions on FBR raids, arrests, and what he described as unlimited enforcement powers that he said discourage voluntary registration. The traders also demanded that honest tax filers be recognised with
Frequently Asked
Questions about this story
Are Pakistani traders specifically asking for lower electricity tariffs in the 2026 budget?
Yes. Kashif Chaudhry, President of Pakistan's Central Organization of Traders, explicitly called for electricity tariff reductions at a press conference in Islamabad on Friday, listing high tariffs alongside petroleum prices and interest rates as key cost burdens on businesses.Would a government budget announcement actually lower electricity bills for commercial consumers?
Not directly. Electricity tariff decisions are made by NEPRA (the National Electric Power Regulatory Authority) through a formal regulatory process, not by the Finance Ministry. The budget could create policy direction or subsidy frameworks, but a formal NEPRA order would still be required before bills change.What is the simplified tax scheme proposed for small traders, and who qualifies?
The traders' coalition is proposing a simplified tax scheme for businesses with an annual turnover of up to Rs. 200 million. Both new and existing tax filers would be eligible to opt in voluntarily, and the scheme would use a one-page Urdu-language return form.What is the super tax that traders want withdrawn?
The super tax is an additional levy imposed on businesses above certain income thresholds, introduced in recent years as a revenue-raising measure. Traders argue it adds a disproportionate burden on already-struggling commercial enterprises and should be eliminated immediately.Does the traders' electricity tariff demand affect K-Electric customers in Karachi?
The demand is a nationwide budget-level call and would apply to all distribution companies including K-Electric, which serves Karachi. However, K-Electric operates under a separate regulatory framework from WAPDA-linked DISCOs, so any tariff relief would need to be addressed through K-Electric's own NEPRA determination process.
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