Islamabad: The Federal Board of Revenue (FBR) has announced simple income tax schemes for traders and small shopkeepers to bring them into the tax net, according to media reports.
The tax collecting agency has issued rules for Income Tax Special Procedure for Traders, Income Tax Special Procedures for Small Shopkeepers and Obtaining and Issuance of Business Licenses, which will come into effect after cabinet’s approval.
There are nearly 4.8 million Pakistanis registered with FBR under income tax, but only 2.2 million filed their annual income tax returns for the tax year 2018.
The FBR schemes offer four benefits to the shopkeepers and traders:
- exemption from audit
- exemption from submitting income tax returns to a particular tax office
- will act no more as withholding agents for the FBR
- simplified income tax returns and wealth statements
Reportedly, traders will pay normal income tax while small shopkeepers will pay either 2% of turnover or up to Rs40,000 fixed annual income tax.
According to FBR, the new schemes have been prepared to address traders’ concerns of process complications, personal interaction with FBR officials, harassment and even corruption.