The Federal Board of Revenue (FBR) has announced its intent to roll out a special tax procedure tailored for small traders and shopkeepers in the country.
This initiative aims to simplify the tax compliance process and make it more accessible for small businesses. The announcement comes in light of the introduction of Section 99B to the Income Tax Ordinance, 2001, through the Finance Supplementary (Second Amendment) Bill of 2019, which was presented in the National Assembly on Wednesday.
Section 99B brings forth the opportunity for the government to establish specific procedures for the assessment and collection of taxes, as well as the filing of returns, applicable to small traders and shopkeepers operating within designated cities or territories. The introduction of this section reflects the government’s commitment to providing a more tailored and simplified tax framework for small businesses, recognizing the unique challenges and needs of this vital sector of the economy.
Under the newly introduced Section 99B, the government will have the authority to prescribe a special procedure for small traders and shopkeepers, focusing on the following key aspects:
Scope and Payment of Tax: Small traders and shopkeepers will benefit from a streamlined process for determining the scope of their tax obligations and making payments. This will likely result in a more simplified and straightforward method for calculating and submitting taxes.
Filing of Returns: The procedure will include a dedicated process for filing tax returns that align with the specific requirements and circumstances of small businesses. This tailored approach will ensure that the filing process is more manageable and less burdensome.
Assessment: The government will introduce a customized assessment system for small traders and shopkeepers to determine their tax liabilities. This will be designed to accurately reflect the income and expenses of these businesses and facilitate a fair and efficient assessment process.
The new section also provides flexibility by allowing the government to specify the cities or territories where this special tax procedure will be applicable. This approach enables a targeted and localized implementation that can address the unique needs of small traders and shopkeepers in different regions of the country.
The introduction of this special tax procedure is a significant step towards supporting the growth and sustainability of small businesses in Pakistan. Small traders and shopkeepers often face challenges in navigating complex tax regulations and compliance requirements. By creating a more tailored and simplified framework, the government seeks to encourage compliance while reducing the administrative burden on these businesses.
This move aligns with the broader efforts of the government to promote ease of doing business in Pakistan, stimulate economic growth, and enhance tax collection efficiency. Small businesses play a crucial role in the nation’s economy, contributing significantly to employment and economic activity. By introducing measures that facilitate tax compliance for this sector, the government aims to foster an environment where small businesses can thrive and expand.
The precise details of the special tax procedure, including the cities or territories where it will be applicable, are expected to be defined by the FBR in the coming months. This will provide clarity to small traders and shopkeepers on the specific requirements and processes they need to follow to comply with their tax obligations.
In conclusion, the introduction of Section 99B to the Income Tax Ordinance, 2001, and the subsequent development of a special tax procedure for small traders and shopkeepers demonstrate the government’s commitment to supporting small businesses. This initiative is expected to simplify the tax compliance process, reduce administrative burdens, and promote a more conducive environment for small businesses to prosper. It reflects a proactive approach to address the unique needs of this important segment of the economy while contributing to broader economic growth and development in Pakistan.
