Small Trader/Retailer ‘Fixed Tax’ Regime Will Be Applicable Nationwide – Business & Finance

ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that the fixed tax regime for small traders and retailers will be applicable throughout Pakistan, regardless of geographical location, without any discrimination.

FBR spokesman Asad Tahir informed a TV channel on Wednesday that there is no difference in fixed tax payments for traders in Karachi, Islamabad and Lahore, but the only difference in tax rates Taxation is between filers (persons appearing on the Active Taxpayers’ List) and non-filers.

The new tax regime is actually a great facility that traders could take advantage of. Traders must apply to the relevant commissioner and file their tax returns and be part of the list of active taxpayers and benefit from the fixed tax regime.

The FBR official clarified that the fixed tax regime is actually not a new development and has been in effect since 2014, when commercial consumers were divided into two categories based on their monthly bills.

From July 1, 2022, commercial electricity bills up to Rs 30,000 would be levied with a fixed charge of Rs 3,000; a tax of 5,000 rupees would be levied on invoices between 30,001 and 50,000 rupees and invoices exceeding 50,000 rupees but not exceeding 100,000 rupees would be subject to a flat tax of 10,000 rupees.

Small traders: streamlined flat-rate tax regime

The above rates are applicable to small traders and retailers who are on the list of active taxpayers and who have paid all dues for the years 2020 and 2021. Non-filers would automatically be charged double the amount.

Appealing to the public, the spokesperson said: “This is a flat fee applicable each month and the same regime will be in place regardless of geographic location. This is actually a very big facility offered to small traders and retailers and they should take advantage of it. They must contact their competent commissioner, pay their previous contributions and register on the list of active taxpayers to benefit from the advantage.

To further clarify, the FBR spokesperson said the department cannot monitor the individual business activity of hundreds of thousands of business relationships across the country, as long as the business relationships are not in their own name. This flat-rate tax is final and discharges the tax to be paid by small traders as of July 1, 2022. There is no other tax payable by them.

The RBF Spokesperson appealed to the citizens to step into the tax net and assured them of RBF’s full support as a strong RBF could be a pillar for a strong Pakistan.

Copyright Business Recorder, 2022

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