ISLAMABAD: Federal Board of Revenue (FBR) have prepared draft of the Fixed Tax law to be enforced on the traders across the country.
According to sources, a legislation draft for recovery of tax from small shopkeepers has been prepared. Small shopkeepers would have to pay tax twice in an year, as suggested in the draft of legislation.
The Federal Board of Revenue (FBR) will issue the tax rate in the next week, according to sources.
The law proposes no requirement of audit for the small shopkeepers, while they will also not bound to recover the withholding tax, the draft of the law says.
The law further suggests that the shopkeepers would not require to file the wealth statement to the tax authorities. The draft of the tax law suggests receiving taxes from small shopkeepers under different categories.
The proposed law recommends imposition of annual Rs. 35,000 fixed tax on a shop over covered area of 150 square feet and recovery of Rs. 40,000 fixed tax in a year from the shop covering the area above 150 sq. feet to 300 sq. feet.
The FBR in August had notified three draft schemes including simplified tax regime for traders, fixed tax regime for small shopkeepers and issuance of business licences to bring the undocumented sectors under the tax net.