FBR Suggests up to Rs.40,000 Tax for the Shopkeepers – Research Snipers

FBR Suggests up to Rs.40,000 Tax for the Shopkeepers

Tax for the Shopkeepers

FBR has suggested a maximum of Rs.40,000 tax for the shopkeepers, as per the reports of local media.

As per the document, the tax department has drafted a document for small shopkeepers and regarding this has asked for feedback from the concerned quarters.

FBR has defined shopkeepers as the ones carrying the business activities at the locations having a covered area less than 300 square feet. But, wholesalers, builders & developers, jewellers, lawyers, real state agents and chartered accountants are not a part of this category.

According to the document, the FBR has divided the shopkeepers into 4 major categories. Under the first one, it has been suggested that if a shop is located in an area specified as category A—a locality where the shop value exceeds Rs.10,000 per square foot as per the valuation of FBR and the shop premises does not go beyond 150 square feet shall pay Rs.35,000 for the tax year 2019 and Rs.40,000 in the next tax year 2020.

Also Read: FBR Chairman Announces the Launch of a Faceless Audit System in 2020

In the same way, if the shop area comes under category A and the shop premises in which the business activity is done goes beyond 150 square feet but does not go beyond 300 square feet shall be paying Rs.40,000 for the tax year 2019 and Rs.50,000 in 2020.

In the meantime, it has been suggested that if the shop is situated at any place other than category A and the shop boundaries do not go beyond 150 square feet then the shop keeper shall pay Rs.20,000 for the tax year 2019 and Rs.25,000 in the following year.

FBR would be charging 2percent of the turnover as defined in section 113 or the amount defined in the aforementioned paragraphs.

It has also been put forward that the shopkeepers could pay money in 2 instalments, but they would have to pay money till December.

The FBR suggested that there shall be no audit or examination of such shopkeepers and on paying the tax, the shopkeepers shall be given a sticker that shall be shown by the shopkeeper on a prominent place within the premises of the business.

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