Shops with 1000 sq ft area to be taxed under new GST rate

The Federal Board of Revenue (FBR) has made it compulsory for the retailers working in 1,000 square-feet-outlets (arranged in malls) to pay a standard rate of 17% General Sales Tax (GST) to the tax assessment expert, news sources detailed. FBR's Member Inland Revenue Policy and representative Dr. Hamid Ateeq Sarwar as of late communicated his perspectives on the issue. 

He said that the FBR, through the usage of its new 'Level 1' GST strategy, needed to gather PKR 2,600 billion under GST forced on local and import fronts, and furthermore by making accumulations regarding the Federal Excise Duty (FED). 

For FY2019-20, the government establishment has fixed its income accumulation focus at PKR 5,550 billion. 

As per the official round issued by the FBR, another condition has now been added to the meaning of 'Level 1 retailer' under the area 2(43A) of the Sales Tax Act of 1990; which involves that all retailers with shops more than 1,000 sq ft will fall under the Tier 1 class, and will be at risk to pay the amended obligation conveyed by the duty system.