Govt working to bring builders, real estate brokers into tax net: Miftah

ISLAMABAD, June 25 (SABAH): Pakistan’s Finance Minister Miftah Ismail on Saturday has said that Federal government was working on bringing restaurants, builders and real estate brokers into the tax net with consultation within the next few months.

In response to a tweet over letting small traders and retailers go with a fixed monthly tax, Ismail said that he could only fight so many battles.

“We are bringing in (gently) millions of shops into the tax net. I have brought jewellers into the net, and rest assured I will bring in all the professionals you mentioned in the net over the next few months,” he tweeted.

The minister said that he had talked to associations of small shopkeepers and jewellers to bring them into the net and did this with their agreement.

“Now I will bring in real estate brokers, builders, housing society developers, car dealers, restaurants, salons, etc., in the net. But nothing forced, with consultation,” he added.

Ismail’s tweet was followed up by one by Salman Sufi, the prime minister’s adviser on reforms, in which he confirmed that real estate, builders, housing society developers “and more” were next on Prime Minister Sharif’s bid to broaden the tax net. “Gradually and with consultation of their representatives with Miftah Ismail,” he added.

The government unveiled new tax measures for both industries and individuals. Addressing a National Assembly session convened to wind up the budget debate, Ismail said that a new fixed tax scheme on shops outside of the tax net under which a small shop owner will pay a fixed tax of Rs 3,000 and big retailers Rs 10,000 per month.

The retailers dealing in gold and had shops of 300 square feet or less would have to pay a fixed income and sales tax of Rs 40,000, which was reduced from Rs 50,000. For bigger shops, the sales tax had been reduced from 17pc to 3pc.

The withholding tax on gold sold by individuals to goldsmiths has been reduced from 4pc to 1pc. A similar scheme of fixed tax will be announced for realtors, builders and car dealers.