Connect with us

Business

Caretaker govt plans to tax retailers; scheme likely to become effective from Jan 15

Published

1 year ago

on

  • Govt has finalised tax scheme including its media campaign.
  • Likely to become effective from January 15, 2024.
  • Tax payments can be made through Jazz Cash, Easypaisa. 

ISLAMABAD: After IMF’s rejection of introducing any fixed scheme for retailers, the caretaker government has finalised the ‘Tax Asaan Application’ for collecting tax from small shopkeepers based on the valuation of each shop determined by the Federal Board of Revenue (FBR).

Top official sources confirmed to The News on Monday that the retailers’ scheme was almost finalised and now the caretaker government would grant permission to launch this scheme before the completion of its stipulated timeframe. 

It is expected that this scheme is likely to become effective from January 15, 2024. 

In the past, every scheme to bring millions of retailers met with failure but it remains to be seen how the caretaker government is going to implement this scheme.

According to the salient features of the upcoming scheme for retailers, the government has identified 16 points which will be included in the scheme.

The list includes small traders shopkeepers, service providers, franchise stores, medical practitioners, hospitals, educational institutions, health clubs, saloons, marriage halls, boutiques, tailoring shops, designers, interior designers, event managers, legal practitioners, travel agents, restaurants, tea houses and pakwan centres etc.

The official sources said that the valuation of the shop determined by the FBR would be used for the imposition of tax.

The government will introduce an easy instalment plan of up to 12 instalments and 25% tax relief for newly registered persons. There will be relief from the burden of tax payments at the end of the year. 

There will be hassle-free tax payments through Jazz Cash, Easypaisa, etc and there will be no fee for consultants due to “The Tax Assan App. The tax would be paid on the 15th of every month.

The caretaker government, according to the sources, does not need any new law that requires promulgation of an ordinance or waiting for the new assemblies to enact amendments in the tax laws for imposing fresh tax scheme for retailers as under the existing law approved by the parliament the FBR is already empowered to introduce a scheme for retailers under section 99C, 99B of Income Tax law.

It is not yet known whether the caretaker government would prefer to face the pressure of shopkeepers or abandon the implementation of its plans to bring all sectors into the tax net. 

The sources said that the salient features of the proposed scheme for small shopkeepers are almost finalised including its media campaign and can be launched after approval from the caretakers.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

2 days ago

on

By

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

Continue Reading

Business

In January 2025, RDA inflows reach 9.564 billion USD.

Published

2 weeks ago

on

By

Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

Continue Reading

Business

FBR lowers Karachi’s built-up structure property valuation rates

Published

2 weeks ago

on

By

A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

Continue Reading

Trending