ISLAMABAD: Federal Board of Revenue (FBR) on Friday announced implementation of agreement with traders from next week.
FBR chairman Syed Shabbar Zaidi in a tweet message said that committees represented by the traders of each area/ market, covering the whole country will be notified.
“Traders and FBR will work together for registration,” the chairman said and termed it a new beginning for taxation history of Pakistan.
The FBR and trade community were at odd on the implementation of some of initiatives for documentation of economy, especially the introduction of CNIC.
However, on October 30, 2019 an agreement was signed between FBR and traders.
Following is the 11-point agreement between the tax authorities and traders associations:
01. The tax rate shall be lowered to 0.5 percent from 1.5 percent for traders having turnover up to Rs100 million.
02. No liability on a trader having up to Rs100 million to collect / deposit withholding tax on transactions.
03. Threshold of annual electricity bill of Rs600,000 for mandatory sales tax registration has been increased to Rs1.2 million.
04. Turnover tax for sectors having lower returns will be revisted with consultation with traders associations.
05. Tax issues of jewelers will be resolved in consultation with jewelers associations.
06. The renewal license fees on middlemen will be revisited.
07. To resolve traders taxation issues a desk at FBR headquarters will be set up with immediate effect. A BS-20/21 officer will be designated to resolve the traders’ problems.
08. For new registration of traders a simple income tax return form in Urdu Language will be introduced. Trade associations will cooperation in FBR’s registration drive.
09. Which trader will be exempted from registration having 1000 square feet shop will be decided by traders committees.
10. The registration of those retailers engaged in wholesale business will be decided in consultation with traders community.
11. The FBR will take no action on sales transactions without CNIC information till January 31, 2020.