Daily The Business

FBR releases Small Shopkeepers Scheme draft for stakeholders’ input

M Jahangir Hayat

Lahore: Federal Board of Revenue (FBR) has released the draft for Small Shopkeepers Scheme under section 99B of the Income Tax Ordinance, 2001 for views and comments.
Proposals from stakeholders as well as  general public are invited for any modification in the aforesaid scheme.
After public review the scheme will be put before the Federal Cabinet for final approval. It is expected that this reformed simplified procedure will be a new beginning on this subject.
S.R.O. (I)/2019.- In exercise of the powers conferred by section 99B of the Income Tax  Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to make the following rules.
“Small Shopkeeper” means an individual where the business is carried out at a premises  having covered area less than 300 square feet but does not include a shopkeeper if he is  engaged in the activity of a jeweler, wholesale, warehouse, real estate agent, builder and
developer, doctor, lawyer, chartered accountant or any other category specified by the  Board, a retailer operating as a unit of a national or international chain of stores, a retailer  operating in an air-conditioned shopping mall, plaza or center, a retailer who has a credit  or debit card machine, any person whose cumulative electricity bill exceeds Rs.300,000
in the immediately preceding twelve months; and any person covered under section 99C  of the Income Tax Ordinance, 2001.
(2) All other expressions used but not defined in these rules shall have the same meaning as  assigned to them under the Income Tax Ordinance, 2001.
The tax payable on profits and gains of a shopkeeper on his income chargeable will be  higher of two percent of ‘turnover’ as defined in section 113 of the Ordinance.

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