Turnover tax rate set at 1.25%, says Khusro Bakhtiar

Briefing on National SME Policy 2021

Industry Minister Khusro Bakhtiar has said that the turnover tax rate has been fixed at 1.25% and the tax rate on annual turnover less than Rs 100 million will be 0.25%.

In a press conference with Information Minister Fawad Chaudhry in Islamabad on Wednesday, Khusro Bakhtiar gave a briefing on National SME Policy 2021. He said that 0.5% fixed tax would be applicable on annual turnover of Rs.10 crore to Rs.25 crore. There is a separate option for income tax and 7.5% income tax would be applicable on turnover of Rs.10 crore. The rate has been set.

He said that loan up to Rs. 10 million would be provided under Easy Finance Scheme and 4200 acres of land has been allotted for SMEs in the country. There are more than 5 million small and medium businesses in Pakistan.

Khusro Bakhtiar said that 78% of the jobs are in SME sector, SMEs read a lot of NOCs to start a business, SMEs have been divided into three tiers but now there is no NOC for small business. Will not be needed.

He also said that they have come up with another scheme of self-declaration and they have to declare the necessary things for the business themselves. There will be only 2% inspection of self declaration. Bribery, bullying, rigging are gone forever.

In addition, there are 1 million manufacturing units in the country and now unsecured loans of Rs. 23 billion will be given while women will be given 25% tax exemption for small businesses.

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