Prime Minister Shahbaz Sharif has ordered an inquiry into how the fixed sales tax levied on traders doubled during the implementation phase ...
Prime Minister Shahbaz Sharif has ordered an inquiry into how the fixed sales tax levied on traders doubled during the implementation phase and suspended tax collection through electricity bills.
while presiding over a meeting on this matter in Lahore, the Prime Minister also ordered to formulate a new procedure for collection of sales tax and directed the concerned ministers to cooperate with the business community in this regard. Take it.
The meeting was attended by Finance Minister Miftah Ismail, Energy Minister Khurram Dastgir, Minister of State for Petroleum Mossadegh Malik, Chairman Federal Board of Revenue (FBR), concerned federal secretaries and other senior officials.
Also Read: Fixed Tax on Small Shopkeepers Withdrawn
It may be noted that in the budget, the government had decided to collect a fixed tax from retailers through electricity bills.
According to which, it was decided to charge a tax rate of Rs.3 thousand on the monthly electricity bill up to Rs.30 thousand, Rs.5 thousand on the bill from Rs.30 to Rs.50 thousand and Rs.10 thousand on the bill of more than Rs.50 thousand. had gone.
However, these tax rates were to be doubled for retailers who are not included in the list of active taxpayers.
Later, under the pressure of protest from several commercial organizations, the government announced to withdraw the fixed tax scheme and restore the old system.
Read more: Govt rejects reports of Rs 80 billion levy of taxes through mini-budget
Sources say that the government may soon issue an ordinance that will restore an old system in effect since 2014 that charged 5 percent on monthly bills up to Rs 20,000 and 7.5 percent on bills above Rs 20,000. Sales tax was collected at the rate of
In this regard, a Finance Ministry official said that since the new rate has been introduced in the Finance Bill, the government will need an ordinance to change the tax collection mechanism, which could be issued in the next few days. Is.
The official further informed that collection of fixed tax will remain suspended during this time.
During the meeting, the Prime Minister directed the participants to consult the representatives of the traders before taking any decision to collect tax from the shopkeepers through utility bills.
Also Read: Decision to raise issue of fixed tax for businessmen before IMF
According to FBR data, trading and wholesale accounts for about 19 percent of GDP but contributes a paltry Rs 6 billion to the national exchequer in taxes.
Of the country's nearly 2.3 lakh traders and shopkeepers, barely 5,000 file tax returns.
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