Islamabad: The Federal Board of Revenue (FBR) has prepared a draft of its ‘Fixed Tax’ law framework — under which the executive plans to introduce a uniform taxation system for the country’s traders. According to the details announced by the taxation agency, shopkeepers would be required to make bi-annual tax payments following the laws implementation.
FBR is expected to issue tax rates to this effect next week. The new law does not require the audit of small shopkeepers. Further, these individuals would not be required to pay withholding tax. Other proposed measures include:
Shopkeepers will not have to file wealth statement with the tax authorities
Tax will apply to small shopkeepers under different categories
The law proposes an annual PKR 35,000 fixed tax for shops comprising a covered area of 150 square feet (sq ft)
Shops of more than 150 sq ft up to 300 sq ft will pay PKR 40,000 in a year
In August 2019, the federal institution had notified three draft schemes for the traders across the country. These included a simplified tax regime, issuance of business licences in order to add undocumented sectors to the tax net and a fixed tag regime for small shopkeepers.
