ISLAMABAD: The Federal Board of Revenue (FBR) and all traders union of the country on Wednesday reached an agreement on tax issues.
“All the decisions have been taken with mutual consent. This would have pleasant effect on our national economy and people would see that the trader community and government are cooperating with each other in the future as well,” Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh said while addressing a press conference in Islamabad. He was flanked by leaders of trader unions, Chairman FBR Syed Shabbar Zaidi and Pakistan Tehreek-e-Insaf (PTI) leader Jahangir Khan Tareen.
Reading clauses of the agreement on this occasion, he said action on condition of the CNIC on sales and purchase had been postponed till January 31 2020, for three months.
The PM’s advisor said issues faced by jewelers would be resolved in collaboration with jewelers association on priority basis.
Withholding tax on renewal of license fee imposed on middleman would be reviewed, he said.
He announced that a special desk would be established at the Islamabad FBR office for dealing with the issues faced by traders. A 20 or 21 grade officer would be posted in the office, who would meet traders every month so that the process of negotiation between the government and traders continued, he maintained.
Abdul Hafeez Shaikh said simple forms would be provided in Urdu for registration and filing of income tax by new traders and the traders committees would fully cooperate in registration of new traders.
Shop built on 1000 murabba feet would be exempted from registration in sales tax and it would be further finalized in consultation with traders committees, he said.
Decision regarding sales tax imposition on the retailer who is also involved in wholesale business would be taken in consultation with traders unions, he read.
The PM’s advisor said those having sales up to 100 million rupees per year would not become withholding agent. Rate of turnover tax had been reduced from 1.5 percent to 0.5 percent on sale of 100 million rupees a year, he added.
“For registration in sales tax, limit for electricity bill would be Rs1.2 million a year now.”
Traders on this occasion announced to call off the strike across the country.
Shaikh regretted that active tax payers from four million traders in the country were less than 0.4 million.