Finance Minister Muhammad Aurangzeb has said that a proposal is under consideration to introduce a fixed tax system for small shopkeepers.
During his budget speech, he stated that under the proposed system, shopkeepers with annual sales of less than Rs 200 million would be eligible to participate.
They will pay a tax of 1% on their annual sales. Shopkeepers will be able to adjust their withholding tax against this fixed tax.
They will be required to deposit at least Rs 25,000 when submitting their returns. They will not be subject to routine audits, will not be responsible for withholding tax on purchases, and will be exempt from using a POS machine.
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