ISLAMABAD: The federal government has introduced a fixed tax scheme for small shopkeepers ahead of the budget.
Addressing a press conference in Islamabad, Minister of State for Finance Bilal Azhar Kayani said that the fixed tax scheme was prepared in consultation with traders and traders’ associations. The scheme will be applicable to shopkeepers with an annual turnover of Rs 200 million or less.
Shopkeepers will be able to submit only a simple one-page form. The form will be available in different languages including Urdu, Pashto, Sindhi and Balochi.
A fixed tax of one percent will be levied on the sales declared by the shopkeeper.
The withholding tax already deducted will be adjustable. A minimum deposit of Rs 25,000 will be required to benefit from the scheme.
The fixed tax scheme is completely optional. Shopkeepers can also remain in the current tax system if they wish.
Shopkeepers included in the scheme will be issued a special FBR identification plate. The shopkeeper’s name, NTN and tax information will be listed on the identification plate. The FBR inspector will verify through the QR code on the plate.
The inspector will not be able to enter the shop without scanning the QR code. Shopkeepers included in the scheme will be exempted from general audits. Traders’ organizations will be consulted before any special audit.
A regular committee will be established for audit matters. The scheme is being implemented with the support of Prime Minister Shehbaz Sharif and the Finance Minister.
Federal Finance Minister Muhammad Aurangzeb said that despite the floods last year, there was stability, we faced the challenges with our own resources, did not take help from anyone, and will reduce the burden on taxpayers.
We have to expand the tax system. Instead of increasing the tax rate, we have to reduce it. Small shopkeepers were consulted. Taxpayers want ease in the tax system.
There are 30 to 40 lakh shopkeepers, today a new scheme is being introduced in this regard, this is a huge milestone for increasing the tax net.
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