There is no difference in tax rates for the small traders in Karachi, Lahore, or Islamabad under the fixed tax regime announced in the budget 2022-23.
Talking to a private television channel, Federal Board of Revenue (FBR) spokesperson Asad Tahir stated that the new scheme will be applicable across Pakistan.
He said that the new tax regime is a big facility that traders could take advantage of. Traders should approach the concerned Commissioner and file their income tax returns and be part of the active taxpayers’ list and take advantage of the fixed tax regime.
The FBR official clarified that the fixed tax regime is not a new development but has been in effect since 2014 when commercial consumers were split into two categories based on their monthly bills.
As of July 1, 2022, commercial electricity bills up to Rs. 30,000 would be levied with a fixed tax of Rs. 3,000, a Rs. 5,000 tax would be levied on bills between Rs. 30,001 and Rs. 50,000, and bills between Rs. 50,000 to 100,000 would be subjected to a fixed tax of Rs. 10,000.
The aforementioned rates are applicable for small traders and retailers who are on the Active Taxpayers’ List and have cleared all dues for the years 2020 and 2021. Non-filers would be automatically charged double the amount.
The spokesperson stated that the fixed tax is the full and final discharge of tax liability to be paid by the small traders from July 1, 2022. There is no other tax required to be paid by them.
