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Rs40,000 fixed income tax imposed on gold shops

Updated 24 Jun, 2022
<p>Finance Minister Mifah Ismail speaks at the National Assembly floor on Friday. Screengrab via YouTube/PTV News</p>

Finance Minister Mifah Ismail speaks at the National Assembly floor on Friday. Screengrab via YouTube/PTV News

The government has decided to impose Rs40,000 fixed income tax on the gold shop owners as it tries to bring the retail shop owners into the tax net under its poverty alleviation tax.

“We came to this number after the recommendation of the gold shop owners,” Finance Minister Miftah Ismail said on the floor of the National Assembly. “But, we increased Rs10,000 on the Rs30,000 tax recommendation of the gold shop owners.”

Miftah’s speech came after the premier’s announcement of a 10% “super tax” on the big industries. The government said the decision was taken to support the poor class of the society.

The finance minister said the government aimed at bringing around 2.5 million to 3 million retail and wholesale shops – out of the total nine million – into the tax net. Their sales and income tax will be fixed into their electricity bill under the new scheme, he announced, adding that they will be charged monthly fixed tax and the FBR would ask them anything.

“There are more than 30,000 shops in the gold business and only 22 are registered whose average sale is shown Rs4,000. We know that those shops, which have Rs10 million daily income and show Rs4,000 average sale,” he said, “We have imposed fixed income and sales tax of worth Rs40,000 on shops located on an area of 300 square feet area or below.”

And, the 17% tax has been reduced to 3% on the Tier-I shops as such amount of levy was never received. Moreover, the withholding tax of 4% on that jewellery, which household people used to sell to shops, was reduced to 1%.

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“I have also imposed more taxes on the companies owned by the sons of Prime Minister Shehbaz Sharif and my company will also pay more taxes,” Miftah said.