Tax return form to be issued in Urdu: Scheme in budget for small traders to end multiple tax rates: Dar

ISLAMABAD: Finance Minister Ishaq Dar has assured All Pakistan Anjuman-e-Tajiran that the budget (2023-24) would facilitate traders’ community by issuing an income tax return form in Urdu language and a simplified scheme for small traders with the abolition of multiple rates of taxes.

Dar held a meeting with a delegation of All Pakistan Anjuman-e-Tajiran headed by Mohammad Naeem Mir at the FBR (headquarters), on Friday.

SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, Chairman RRMC Ashfaq Yousif Tola, chairman FBR, and senior officers from the FBR attended the meeting.

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At the conclusion of the meeting, Mohammad Naeem Mir told Business Recorder that the traders’ community has proposed to end sales tax registration on the basis of the size of shops/outlets and strongly objected to compulsory registration of small-size retailers with the point of sales (POS) system which is unjustified and unacceptable.

The POS system should be replaced with some other system for increasing the revenue as well as documentation of the retailers’ community.

He added that the government has finalised the return form in Urdu language to facilitate the traders’ community.

The Reforms & Revenue Mobilization Commission (RRMC) has recommended to the Ministry of Finance that for retailers other than Tier-1, collection of income tax/sales tax with electricity bills proposed through the Finance Act 2022 should be revived with appropriate amendments, whereby, the amount of sales tax/income tax should not exceed the amount of electricity bill (other than fuel adjustment charges). For retailers operating in malls where one electricity bill is raised against single meter in the name of landlord, such landlord should be required to provide a statement on a monthly basis, whereby, the details of bill/tax allocated to retailer is provided to FBR to identify Tier-1 and non-Tier retailers or service providers. It recommended that a simplified return and filings should be introduced for the retailers.

Abolishment of multiple rates would reduce complexity and bring rationalization.

Moreover, the revision in rates of advance tax collection would reflect the margin of the wholesaler/dealer/distributor and retailers. Higher rates for unregistered persons would assist in broadening the tax base and would also assist the tax machinery to rope such persons under the tax net.

The delegation thanked the finance minister for inviting the budgetary proposals from the business community. They talked about the current economic circumstances of the country with the finance minister and also apprised him about the challenges confronting them, particularly with regard to taxation. The delegation suggested proposals to address those challenges for the upcoming budget 2023-24. They also assured the finance minister of dedication and determination of the business community to support the government in bringing economic growth and stability in the economy.

Finance Minister Dar appreciated the budgetary proposals of the delegation and assured that the government puts a top priority to address the issues of the business community for economic growth of the country. He also stated that the government will ensure all possible assistance to the business community by introducing a business and people-friendly budget for Fiscal Year 2023-24.

The delegation comprised Naeem Mir, Secretary General APAT and other senior representatives of the organization. The finance minister was accompanied by Tariq Mehmood Pasha, Special Assistant to the Prime Minister on Revenue, Ashfaq Tola chairman RRMC, Asim Ahmad chairman Federal Board of Revenue, and other senior officers from the Finance Ministry and Revenue Division.

During the meeting, the minister emphasized the importance of paying due share of taxes by the traders and business community in the national exchequer for raising additional revenues for the growth of the national economy. He reiterated that the government regards the contribution of traders and the business community to the economy very highly. He said that measures are being taken to present a business-friendly budget without burdening the trading community and the general public. He stated that the government will extend all possible cooperation to the traders for running their businesses for the collective betterment of the country.

The visiting delegation apprised the minister about issues being faced by the traders. They assured full support to the government in reviving the economy and achieving budgetary targets for the next financial year. The delegation also presented their proposals for the upcoming federal budget which were welcomed by the Finance Minister.

Copyright Business Recorder, 2023