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%.

Salient features

• Tax on income, not expenses
• New scheme on the cards for car dealers, realtors
• 4 million people phoned govt under ‘sasta petrol sasta diesel scheme’, 1 million have been registered
• Rs16 billion disbursed under the ‘sasta petrol sasta diesel scheme’, including 8 million BISP recipients
• Number of poverty score to be decided for disbursement of cheap flour scheme
• Withholding and sales tax was withdrawn in IT sector
• Venture capital ended
• Oil marketing companies’ tax decreased from 0.57% to 0.5%
• Target to decrease primary deficit from Rs1,600 billion to Rs153 billion
• Export outgoing indenter tax at 1%
• Overseas Pakistanis, NICOP registered people to be included in active taxpayers’ list
• 50% deduction on capital gains on in-service plots allotment
• Salex tax exempted on surgical instruments purchase and skin and hides
• Tax target increased from Rs7,004 billion to Rs7,470 billion
• Federal government to provide Rs4,373 billion to provinces

“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.