In an effort to pull retail shop owners into the tax net under its poverty alleviation tax, the government has made the decision to levy an Rs40,000 fixed income tax on the owners of gold shops.
“We got at this amount based on the proposal of gold store owners,” Finance Minister Miftah Ismail remarked on the National Assembly floor. “However, we added to the Rs30,000 tax suggestion from the gold business owners by Rs10,000,” said Miftah Ismail.
Miftah’s remark came after the premier announced a 10% “super tax” on key businesses. According to the government, the decision was made to help the disadvantaged section of society.
The finance minister stated that the administration hoped to bring 2.5 million to 3 million retail and wholesale shops within the tax net, out of a total of nine million. Under the new arrangement, their sales and income taxes would be put into their power bill, he said, adding that they will be charged a monthly fixed fee and the FBR will not ask them anything.
“There are over 30,000 gold stores, but only 22 are registered, with an average sale of Rs4,000. We know that those stores with Rs10 million daily income and Rs4,000 average sales,” he added. “We have imposed a fixed income and sales tax of Rs40,000 on shops with 300 square feet or less.”
Furthermore, the 17 percent tax on Tier-I stores has been cut to 3 percent because such a charge was never collected. Furthermore, the withholding tax on such jewellery, which household members used to sell to stores, was cut to 1%.
“I have also placed more taxes on the enterprises controlled by Prime Minister Shehbaz Sharif’s sons, and my company will pay higher taxes as well,” Miftah stated.