FBR proposes up to Rs40,000 tax for shopkeepers

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.


  1. What if the place will be in A category but doesnot give a profitable ratio/year.
    Why you put a same rule of A category of rawalpindi(Big Valueable) city…why u compare the small city as in A category
    Plz answer …there should a different rules for the small towns cities …. I have got analysis that chairman FBR just taking a decision in Big Cities which generate Income at top..kindly change your policies for the poor cities….dont compare big cities with those who are at the top of Mountain

  2. Plz also control on the commodities prices which should not be escl ate after the imposing tax . Good job in sha allah it will benefit for the nation.

  3. The Minister should workout ways that these taxes are passed on as usual; by all and sundry and cause further escalation in prices. There should be ways to monitor the prices and some sort of interventions. In the nutshell the retailers should pay taxes from their income and not simply pass on the sane to consumers.

  4. Tax is good .but plz justify us why the BiG City A category is equal to the small town A category….there should be a difference for the backward areas because they can not genereate same Money as compare to BiG Cities

  5. Is this property tax per square feet? Businesses make profits and losses, how about bringing a value added tax?
    A blank cheque is daylight robbery by the federal board of revenue! The proposals will make shopkeepers criminals. They’re going push inflation sky high!

  6. This suggestion i have told that small shop keeper may come in the tax but one thing govt should register first and make teams for the areas.


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