The Federal Board of Revenue (FBR) has issued a fixed tax scheme for small traders, income tax and sales tax will be deducted from the electricity bills from small traders.
Federal Board of Revenue (FBR) Fixed Tax Scheme 2022
The new fixed tax regime introduced by the FBR for the collection of sales tax with monthly electricity bills has created concerns in the small traders as it would force them to pay minimum sales tax of Rs3,000 even though their electricity bill amount is less than Rs.1,000.
The government has launched a simple fixed tax scheme for the convenience of small traders, now the payment of sales tax and income tax of small traders will be done along with the monthly electricity bill. FBR was previously collecting sales tax in monthly electricity bills at the rate of 5% and 7.5% of the amount of bill, however, vide Circular No.09 of 2022-23, the tax authority has decided to charge minimum tax on monthly electricity bills of retailers @ Rs.3, 000 for monthly bill up to Rs.30,000, which is discriminatory and will put extra tax burden on those small traders who were consuming less units of electricity bill.
Small businessmen benefiting from the fixed tax scheme will not collect sales tax and income tax from the FBRC and the small businessmen who pay monthly fixed tax will be exempted from audit. Obtain Exemption Certificate of 235 Lawyers, Doctors, Beauty Parlors and all such service providers can obtain exemption from their concerned Commissioner in this regard FBR has issued necessary instructions to all field formations in this regard.