Govt has identified 16 points to be part of scheme including small traders, shopkeepers, service providers
- Govt has finalised tax scheme including its media campaign.
- Likely to become effective from January 15, 2024.
- Tax payments can be made through Jazz Cash, Easypaisa.
ISLAMABAD: After IMF’s rejection of introducing any fixed scheme for retailers, the caretaker government has finalised the ‘Tax Assan Application’ for collecting tax from small shopkeepers based on the valuation of each shop determined by the Federal Board of Revenue (FBR).
Top official sources confirmed to The News on Monday that the retailers’ scheme was almost finalised and now the caretaker government would grant permission to launch this scheme before the completion of its stipulated timeframe.
It is expected that this scheme is likely to become effective from January 15, 2024.
In the past, every scheme to bring millions of retailers met with failure but it remains to be seen how the caretaker government is going to implement this scheme.
According to the salient features of the upcoming scheme for retailers, the government has identified 16 points which will be included in the scheme.
The list includes small traders shopkeepers, service providers, franchise stores, medical practitioners, hospitals, educational institutions, health clubs, saloons, marriage halls, boutiques, tailoring shops, designers, interior designers, event managers, legal practitioners, travel agents, restaurants, tea houses and pakwan centres etc.
The official sources said that the valuation of the shop determined by the FBR would be used for the imposition of tax.
The government will introduce an easy instalment plan of up to 12 instalments and 25% tax relief for newly registered persons. There will be relief from the burden of tax payments at the end of the year.
There will be hassle-free tax payments through Jazz Cash, Easypaisa, etc and there will be no fee for consultants due to “The Tax Assan App. The tax would be paid on the 15th of every month.
The caretaker government, according to the sources, does not need any new law that requires promulgation of an ordinance or waiting for the new assemblies to enact amendments in the tax laws for imposing fresh tax scheme for retailers as under the existing law approved by the parliament the FBR is already empowered to introduce a scheme for retailers under section 99C, 99B of Income Tax law.
It is not yet known whether the caretaker government would prefer to face the pressure of shopkeepers or abandon the implementation of its plans to bring all sectors into the tax net.
The sources said that the salient features of the proposed scheme for small shopkeepers are almost finalised including its media campaign and can be launched after approval from the caretakers.
Originally published in The News
