Finance Minister Muhammad Aurangzeb on Friday announced a fixed tax rate scheme for small shop owners.
The voluntary ‘Asaan Scheme’ aimed at small shops with annual earnings of Rs200 million, seeks to broaden the tax net by imposing a 1 per cent fixed tax on net income of the business. Shop owners will have to sign up for the scheme via a form available in multiple local languages.
The announcement was made during a press conference by the finance minister along with State Minister for Finance Bilal Azhar Kiani.
According to Kiani, shop owners who opt in for the scheme will receive Federal Board of Revenue (FBR) plaques displaying a unique QR code on them to be placed outside their shops and a point of sale system inside their shops.
Tax inspectors making the rounds of the market will be able to acquire tax details for these shops using their QR codes. Any irregularities will be up for audit in consultation with local traders’ associations.
Both non-filers and filers can enter the scheme. Filers will be able to opt for the scheme under the condition that, in the past three years, the business’ turnover must not exceed Rs200m, Kiani said.
He added that kiosks are exempt from the scheme.
More to follow
