FBR proposes up to Rs40,000 tax for shopkeepers

[StormBreaker]

ISLAMABAD: The Federal Board of Revenue (FBR) has proposed a maximum Rs40,000 fixed tax for shopkeepers, Pakistan Today has learnt.

As per the documents, the tax department has prepared a draft for small shopkeepers and in this regard has requested feedback from the relevant quarters.

FBR has defined shopkeepers as “individuals carrying business activities at premises having a covered area less than 300 square feet”. However, jewellers, wholesalers, real estate agents, builders & developers, lawyers, chartered accountants are not included in the shopkeepers’ category.

Documents revealed that the FBR has divided the shopkeepers into four categories. Under the first category, it has been proposed that if a shop is located in area specified as category A (an area where the value of shop exceeds Rs10,000 per square foot as per FBR’s valuation) and the shop premises does not exceed 150 square feet shall pay Rs35,000 for the tax year 2019 and Rs40,000 in next tax 2020.

Similarly, if the shop is located in an area specified as category A and the shop premises in which the business activity is carried out exceeds 150 square feet but does not exceed 300 square feet shall pay Rs40,000 for the tax year 2019 and Rs50,000 in the next tax year.

Meanwhile, it has been proposed that if the shop is located at any place other than category A and the shop premises do not exceed 150 square feet shall pay Rs20,000 for the tax year 2019 and Rs25,000 in the next tax year.

Likewise, if a shop is located at any place other than category A and the shop premises exceed 150 square feet but not 300 square feet shall pay Rs25,000 for the tax year 2019 and Rs30,000 next year.

FBR would charge two per cent of turnover as defined in section 113 or the amount of tax set out in the above-stated paragraphs.

It has also been proposed that shopkeepers could pay money in two instalments but they would have to pay money till December.

“There shall be no audit or examination of such shopkeeper and upon paying tax, shopkeeper shall be issued a sticker that shall be displayed by the shopkeeper on a prominent place within the business premises,” the FBR proposed.

 

[Pakistansdefender]

This is going to be very very good development.
It would be for the future.

 

[StormBreaker]

This is going to be very very good development.
It would be for the future.

A well planned initiative, balanced in all aspects

 

[OldenWisdom...قول بزرگ]

Are there even defined business districts in Pakistan or every street is littered with a store front? Besides if businesses in a business district are being taxed would they be provided facilities? Like clean streets, regulated billboards, language and font accepted on billboards, parking spaces .... etc

 

[imrankhan7250]

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Are there even defined business districts in Pakistan or every street is littered with a store front? Besides if businesses in a business district are being taxed would they be provided facilities? Like clean streets, regulated billboards, language and font accepted on billboards, parking spaces .... etc

This type of tax should be devolved to the municipal corporations and federation should collect its 48%share from municipal corporations. A complete reverse practice against the traditional divisible pool. hope you understand.

 

[Samlee]

OK Let's Do Rough Maths

There Are Some 6 Million(Members Are Free To Correct Me On This I Heard That This Is The Number of Commercial Electricity Connections) Traders.So If They All Pay Rs 35000 That Should Make Rs 210 Billion Which Is Good

But Documentation Goes Down The Drain

 

[Pakistansdefender]

Are there even defined business districts in Pakistan or every street is littered with a store front? Besides if businesses in a business district are being taxed would they be provided facilities? Like clean streets, regulated billboards, language and font accepted on billboards, parking spaces .... etc

Only when they give taxes then they are entitled for all of this ..
You stay in your USA or canda bro comfortably . This is Pakistan you don't know the working here .
People don't pay taxes and this tax issue if done was by litterly begging them to pay in the name of the country .

 

[jupiter2007]

In the long run best practice would be to decentralize power to district level and each district should be empowered to register every business within district. Business can run only if it's registered with District government. District government should be able to force close a business if it's not registered.

All businesses need an Employer Identification Number (EIN) which will be it's federal tax ID number. Federal, Provincial should be collected from every registered business.
If Small Business Monthly Income = 100,000
100,000 x 12 = 1,200,000 Annual income
Year Tax 30,000 will be collected and it should be 70% Federal Tax, 15% Provincial Tax, 15% District government tax.
http://taxcalculator.pk/