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ISLAMABAD: The Federal Board of Revenue (FBR) has notified a simplified and voluntary income tax regime for small shopkeepers, offering exemption from routine audit, withholding tax obligations and mandatory digital invoicing in a fresh attempt to broaden the country’s narrow tax base.
The Special Procedure for Small Shopkeepers was notified through Income Tax SRO 1166 issued on Tuesday. The draft procedures were issued earlier on July 14 to seek objections and suggestions from the public.
As per the plan, individual retailers with an annual turnover of up to Rs200 million will have the option of paying income tax equal to one per cent of their gross turnover instead of filing returns under the normal taxation regime.
However, participating retailers will have to pay a minimum cash tax of Rs25,000 even if taxes already deducted at source exceed their liability. Any excess withholding tax will not be refundable.
