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.