KARACHI: The government is gearing up to impose tax on 3.6 million retailers, Bol News reported on Saturday quoting sources as saying.

The tax rate can range from Rs 1,000 to Rs 5,000 per month on a retailer, the sources said. The tax levied on small traders will be estimated from the amount of electricity bills, the sources added.

“This tax will be collected in both urban and rural areas. The caretaker government will not need to enact any new law in this regard. This tax will not have to be postponed until a presidential ordinance or the meeting of a new assembly,” the sources said.

The Federal Board of Revenue (FBR) has already got powers in this regard.

There is a possibility of imposing new rates of tax on retailers under these options. The proposed tax rates are being structured according to the size of the business.

A 100 square feet shop is likely to be taxed at Rs1,000.

A shop of 200 to 300 square feet is likely to be taxed at Rs 3,000. 5000 tax is likely to be levied on a shop of 500 square feet or more.

A tax of Rs 1000 is likely to be levied on each shop in non-urban areas.

This tax is likely to be paid through the annual sales tax return.  In this regard, a single page return form is likely to be issued.