Islamabad: The Federal Board of Revenue (FBR) recently constituted a committee for finalising a fixed income tax scheme for traders by August 25, a news source reported. The taxation authority issued a notification in which it directed the 15-member committee to finalise a fixed tax regime for small traders and shopkeepers, along with simplifying the taxation procedure for them.
The FBR has appointed its Member Taxpayers Audit Nausheen Amjad as the convener of the committee. FBR members Accounting, Income Tax Policy, and Income Tax Operations would assister her. The board has also included eight representatives of the traders in the committee. Moreover, three renowned tax and legal experts are also part of the team.
As part of its national budget announcement for the (fiscal year) FY-2019-20, the government had made it mandatory for industrialist to seek CNIC from wholesalers and distributors undertaking transactions exceeding PKR 50,000.
The traders have demanded flexibility on this front. They have also asked the FBR to include anyone dealing in sales of goods and services in its definition of small traders regardless of covered area of their shops and availability of electricity connection. The traders have also proposed to extend the taxation scheme to Azad Jammu & Kashmir (AJK) and Gilgit-Baltistan (G-B).