Another ordinance in the works for tax concessions to traders.

Byline: Mubarak Zeb Khan

ISLAMABAD -- The government has decided to implement concessions in taxes for traders through a presidential ordinance next week, a top tax official told Dawn.

The tax rate concessions were offered in a deal reached between the Federal Board of Revenue and representatives of traders on October 30. The pact has two parts - concession in tax rates and facilitation measures.

Talking to Dawn, FBR Chairman Shabbar Zaidi said the presidential ordinance will be issued next week. Under that, traders will pay 0.5 per cent of an annual turnover of Rs100 million instead of 1.5pc and the same traders would not become withholding agents.

He said the electricity limit for registration in sales tax will be increased to Rs1.2 million from the existing Rs600,000. However, he said the CNIC condition for Rs50,000 purchases will be effective from Feb 1, 2020.

Meanwhile, the FBR has notified 493 market committees across the country with 53 in Khyber Pakhtunkhwa, 13 in the federal capital, 373 in Punjab where seven district level committees from the south were included.

Similarly, 40 committees were notified in Sindh, which include eight at the district level and 15 in Quetta. These committees will be looked after by respective regional tax officers (RTOs).

The two sides already have agreed that the government would introduce simple forms in Urdu for registration of new traders and income tax return filing, while trade bodies will offer full cooperation in the incorporation of new businesses.

On the issue of big retailers, the chairman said that the FBR is thankful for the overwhelming and productive response of tier-1 players for integration...