KARACHI: In a bid to enhance tax net and simplify tax filing system, the Federal Board of Revenue (FBR) has finalised the fixed tax rates and drafted one-page income tax return form to facilitate small shopkeepers, its is learnt.
According to the rates proposed by the FBR, a small shopkeeper operating business activity on up to 150 square feet will be required to pay fixed income tax of Rs20,000 in a year. This rate is for shopkeepers who are not falling in designated areas.
The sources in the FBR said the bureau would notify the fixed income tax rates and income tax returns and wealth statement forms in the days to come. The bureau would also notify categorisation of areas to implement fixed tax regime (FTR).
Rs35,000 as fixed income tax has been proposed for shopkeepers operating up to 150 square feet in categorised or designated areas while shops on area above 150 square feet, but less than 300 square feet in uncategorised areas have been proposed to pay Rs25,000 per annum. Those shops having similar areas, but in categorised areas would pay Rs40,000 as income tax per annum.
In the proposed draft, a shopkeeper would be required to submit details, including name, CNIC, address, covered area of shop, turnover and tax chargeable in a tax year.
It has also been learnt that the draft simplified one-page return form for traders has also been finalized and the draft return would require details of sales, purchases, expenses and payment of tax.
The simplified return form for traders would require details of bank account, which is not mandatory in case of small shopkeepers. The sources said the traders would also be required the filing of wealth statement, which has also been drafted as a one-page form.
The FBR drafted simplified income tax return and wealth statement forms in pursuance to the agreement signed with the traders association on October 30, 2019.
