AGL 38.11 Decreased By ▼ -0.05 (-0.13%)
AIRLINK 136.55 Increased By ▲ 2.36 (1.76%)
BOP 9.21 Increased By ▲ 0.36 (4.07%)
CNERGY 4.73 Increased By ▲ 0.04 (0.85%)
DCL 8.90 Increased By ▲ 0.23 (2.65%)
DFML 39.29 Decreased By ▼ -0.49 (-1.23%)
DGKC 86.06 Increased By ▲ 0.91 (1.07%)
FCCL 35.35 Increased By ▲ 0.45 (1.29%)
FFBL 75.90 Increased By ▲ 0.30 (0.4%)
FFL 12.67 Decreased By ▼ -0.07 (-0.55%)
HUBC 109.11 Decreased By ▼ -0.34 (-0.31%)
HUMNL 14.68 Increased By ▲ 0.58 (4.11%)
KEL 5.46 Increased By ▲ 0.06 (1.11%)
KOSM 7.93 Increased By ▲ 0.18 (2.32%)
MLCF 41.18 Decreased By ▼ -0.19 (-0.46%)
NBP 70.68 Increased By ▲ 0.98 (1.41%)
OGDC 195.60 Increased By ▲ 1.98 (1.02%)
PAEL 27.00 Increased By ▲ 0.79 (3.01%)
PIBTL 7.49 Increased By ▲ 0.07 (0.94%)
PPL 167.95 Increased By ▲ 4.10 (2.5%)
PRL 26.27 Decreased By ▼ -0.09 (-0.34%)
PTC 20.34 Increased By ▲ 0.87 (4.47%)
SEARL 87.60 Increased By ▲ 3.20 (3.79%)
TELE 7.86 Decreased By ▼ -0.13 (-1.63%)
TOMCL 35.35 Increased By ▲ 1.30 (3.82%)
TPLP 8.92 Increased By ▲ 0.20 (2.29%)
TREET 17.20 Increased By ▲ 0.02 (0.12%)
TRG 59.50 Decreased By ▼ -1.50 (-2.46%)
UNITY 31.51 Increased By ▲ 2.55 (8.81%)
WTL 1.37 No Change ▼ 0.00 (0%)
BR100 10,850 Increased By 74.4 (0.69%)
BR30 32,666 Increased By 431.7 (1.34%)
KSE100 100,892 Increased By 809.5 (0.81%)
KSE30 31,324 Increased By 130.3 (0.42%)

The Federal Board of Revenue (FBR) has proposed a new optional regime of sales tax for tier-1 retailers by charging 2 percent sales tax of turnover without adjustment of input tax in the upcoming budget (2016-17). Sources told Business Recorder here on Saturday that the tier-1 retailers cover those retailers who are defined under rule 4 of the Sales Tax special procedure meant for retailers. It has been estimated to generate additional revenue through introduction of the new scheme sales tax for the said category of retailers.
Presently, tier-1 retailers are obliged to pay sales tax at standard rate and paying sales tax under normal regime. The proposal is under consideration to introduce optional regime of sales tax for tier-1 retailers by charging sales tax @ 2% of turnover without adjustment of input tax.
Presently, tier-1 retailers covers retailers operating as a unit of a national or international chain of stores; a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; a retailer who has a credit or debit card machine; a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees six hundred thousand and a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers.
The retailers operating as a unit or a franchise or any other arrangement of a national or multinational chain of stores, shall obtain a separate registration distinct from their principal.
Tax experts said that the tier-1 retailers were introduced through SRO 608(i)/2014. The retailer under tier-1 has by and large did not accept application of standard rate and agitating against the scheme. The board has also failed to enforce standard rate and collection of sales tax from them. Therefore it is under serious consideration to introduce alternative proposal which maybe acceptable to the retailers, they added.

Copyright Business Recorder, 2016

Comments

Comments are closed.