Fixed Tax Regime

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The government is working on extending more and more facilitations to the business community by addressing their reservations and concerns over the tax system. Once the business community is soothed and satisfied, the tune of revenue collection will be increased significantly. Factually, traders are not against the tax collection as all have a common voice that harassing traders in the name of collecting taxes must be stopped.
Therefore government must adopt a comprehensive strategy in broadening the tax base and tax net rather burdening the existing taxpayers. Traders are facing multiple challenges on proposed new tax regime and amendments made for documentation of the economy specially, imposition of Sales Tax at import stage, Retail Price and CNIC condition.
In this regard, the tax authority is nowadays working on a proposed draft on fixed tax regime which may be finalized after consultations with stakeholders. The draft for Small Shopkeepers Scheme under section 99B of the Income Tax Ordinance, 2001 has been released for views and comments.
The major aim of this draft is to seek proposals from stakeholders; Chamber of Commerce, Trade Associations as well as general public for any modification in the aforesaid scheme because the government believes in partnership with the business community. Increasing tax base and tax net has been on the FBR top priority. With due consultations with traders and business community amendments will be made to facilitate tax payers and recommendations from the business community are welcomed.
Details of fixing retail price for auto parts, imposition of sales tax on size of the shop, issues pertaining to furniture industry, withdrawing Paint Industry from Schedule III and proposed scheme for cottage industry. Consultations are being made with Jewelers for data collection, taxes and collection of receipts and we are hopeful to finalize amendments at the earliest. Without documentation of economy Pakistan can’t move forward.

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