KARACHI, June 30: The Central Board of Revenue has exempted small businessmen from sales tax and turnover tax. The CBR through a notification issued on Wednesday raised the turnover threshold of manufacturers and retailers for levy of sales tax regime.

All manufacturers and retailers having turnover less than Rs5 million per annum will be exempted from sales tax and turnover tax. Such businessmen will no longer be required to maintain any records for the purpose of sales tax. The notification also exempts them from sales tax audit for the future as well as past period.

Meanwhile, FPCCI president Riaz Ahmed Tata has appreciated the CBR move and said that this would help in building confidence between the tax collectors and business community.

He said the decision would provide relief to small traders and manufacturers. Mr Tata said over 40,000 small manufacturers and retailers would now be in a position to concentrate on their businesses without any fear of requirements of sales tax accounting, payment and audit.