FBR to impose new taxes on 3.6 million retailers
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In Islamabad, the Federal Board of Revenue (FBR) is exploring various options for implementing a fixed tax system for the country's 3.6 million retailers based on the size of their shops. This fixed tax would range from Rs1,000 to Rs5,000 per month.
The FBR has devised a plan to discontinue the practice of collecting taxes from small traders and shopkeepers through electricity bills. Instead, they are contemplating the introduction of new fixed tax schemes for both urban and rural areas.
According to this plan, the caretaker government doesn't require new legislation or ordinances to enact these changes since the existing parliamentary-approved laws grant the FBR the authority to establish such tax schemes for retailers.
It remains uncertain whether the caretaker government will face resistance from shopkeepers or proceed with its plans to expand the tax base across all sectors. Under the proposed scheme, consideration is being given to imposing Rs1,000 on shops with a size of 100 square feet, Rs3,000 on shops ranging from 200 to 300 square feet, and Rs5,000 on shops measuring 500 square feet in urban areas. In rural areas not under the jurisdiction of municipal committees, a flat rate of Rs1,000 per shop is being proposed.
The FBR's proposal also includes allowing retailers to offset the paid tax against their next year's tax return, with a simplified one-page form for availing this fixed scheme. When contacted for comment, FBR Chairman Amjad Zubair Tiwana stated that no final proposal has been confirmed yet, and it will be shared with the finance minister once it is finalized.
