Government Quietly Expands Traders' Tax Scheme to Include Residential Shops
In a discreet move amidst ongoing uncertainty about the $7 billion International Monetary Fund (IMF) program and temporary relief measures for electricity consumers, the government has broadened the scope of its traders’ tax scheme.
Recently, the federal government extended the tax scheme to include 100-square-foot shops located in residential areas. Previously exempt from the fixed income tax ranging from Rs100 to Rs60,000 per month, these shops are now covered under the revised scheme. This expansion aims to address IMF concerns about the limited coverage of the original scheme.
The decision, part of an update to the Tajir Dost Special Procedure notification, reflects the government’s effort to resolve IMF objections. However, to avoid backlash from traders and the Jamaat-e-Islami, the government has kept this adjustment low-profile. The revised notification has not been publicly disclosed.
Federal Board of Revenue (FBR) spokesperson Bakhtiar Muhammad did not respond to requests for comments on the matter.
