The government has announced a fixed tax scheme for small traders ahead of the new budget. Under the scheme, traders with annual sales of up to Rs 2 billion (20 crore) will pay only 1% fixed tax. Under the new scheme, no FBR officer will be allowed to enter the shop of a registered trader.
Minister of State Bilal Azhar Kayani, while addressing a press conference in Islamabad, said that to benefit from the facility, it will be mandatory to declare annual sales of Rs 2 billion for three years.
Traders will have to choose either the voluntary scheme or the normal tax regime. Non-registered traders will face penalties of Rs 10,000 in the first month, Rs 25,000 in the second month, and Rs 50,000 per month if they continue to remain unregistered.
He said that a simple one-page form has also been prepared for the new scheme. A plaque bearing the trader’s name and NTN number will be displayed at registered shops, and information can be accessed by scanning a QR code on it. No FBR officer will be allowed to enter the shop of a registered small trader, and those benefiting from the scheme will not be subject to audit.
Registered traders will also not be required to install a POS system. However, for major matters, audit may be conducted in consultation with traders’ own committee. To benefit from the scheme, traders must declare annual sales of Rs 2 billion over a period of three years.
The minister of state also said that the target has been set to increase the number of registered small traders from 600,000 to 3.5 million.
