The new federal budget is expected to introduce a fixed tax scheme for small traders across the country.
Under the plan, more than 3.5 million small traders are set to be brought into the tax net. According to the proposal, businesses with an annual turnover of Rs200 million or less will be required to pay a fixed tax of one per cent.
A registration fee of Rs25,000 will be submitted along with a simple one-page tax return for inclusion in the scheme. The government is expected to generate Rs50 billion in revenue from the proposed arrangement.
Registered traders will be required to display their name and NTN number on a notice board outside their shops.
Traders will have to choose between the voluntary scheme and the normal tax regime, with penalties foreseen for failure to register.
