The government has announced a fixed tax plan for small traders before the new federal budget.
At a press conference in Islamabad Minister of State Bilal Azhar Kayani said small traders with sales of Rs200 million or less will pay a fixed tax of one per cent.
He said these traders must have shown sales of up to Rs200 million in the last three years to benefit from this plan.
Kayani said traders have to choose between this plan and the normal tax system.
The government wants to increase the number of registered traders from 600,000 to 3.5 million and bring 3.5 million more traders into the tax system.
A trader with sales of Rs200 million will pay Rs25,000 in tax under this plan.
Kayani warned that traders who do not file taxes and do not register will face fines.
- A fine of Rs10,000 will apply in the month.
- It will increase to Rs25,000 in the month.
- Traders who remain unregistered will face a fine of Rs50,000.
A simple one-page registration form has been made for traders.
Traders who file taxes will show a board with their name and National Tax Number (NTN).
This information will also be available through a QR code on the board.
Kayani said no Federal Board of Revenue (FBR) officer will be allowed to enter the premises of a trader.
He added that small traders registered under this plan will not be audited and do not need to install a Point of Sale (POS) system.
Any audit, in cases can be done with the help of traders representative committees.
