The Federal Board of Revenue (FBR) has issued a simplified income tax return form for small retailers and shopkeepers having an annual turnover of less than Rs. 10 million.
The FBR issued S.R.O. 1955(1)/2022 on Monday to amend the Income Tax Rules 2002.
Earlier, the draft of the form was issued through SRO1892(I)/2022 on October 13th, 2022 seeking comments from the stakeholders.
However, President of Markazi Tanzeem-e-Tajaran Pakistan Muhammad Kashif informed that the return form notified through S.R.O. 1955(1)/2022 issued for small traders has been out rightly rejected. The FBR has committed that the form would be in the Urdu language, but it is in English. The form should have been in the Urdu language.
Secondly, it should be simple in Urdu. The form issued under the S.R.O. 1955(1)/2022 is in English language and therefore it is not acceptable, he added.
He added that the scheme which has been restored under the recently-promulgated Presidential Ordinance was not acceptable to the traders’ community. The association had shared the detailed plan of a simple fixed scheme with the FBR. The fixed tax scheme should be practical for small traders and shopkeepers across the country.
Under the S.R.O. 1955(1)/2022, the new return form would be applicable for the tax year 2022. According to the simple return form, the traders/retailers have to declare basic information such as business turnover/receipts, electricity bills, cost of sales, opening stocks, purchases, other expenses, closing stocks, gross profits, profit and loss expenses, and other information.
Under the notification, the FBR has also prescribed a return form for the individuals and the association of persons (AoPs) having turnover up to Rs. 50 million.
