Islamabad, 6 January, 2024 (GNP): According to the media reports, the Federal Board of Revenue (FBR) has made the decision to levy taxes on retailers in five prominent cities of the country, namely Karachi, Islamabad, Lahore, Peshawar, and Quetta.
Sources have indicated that the imposition of a tax on 3.5 million retailers in the specified cities, including Karachi, Islamabad, Lahore, Peshawar, and Quetta, is expected to generate Rs100 billion in revenue.
FBR has devised a scheme for this purpose, with the initial phase focusing on taxing retailers in the four provincial capitals and the federal capital.
According to sources, the proposed taxation on retailers will be determined by factors such as the size of the shop and its annual income volume.
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The collection of this tax is slated to occur on a monthly basis. The sources further mentioned that the scheme is fully prepared, and its implementation is contingent on receiving approval from the government.
Sources have indicated that retailers can expect a minimum of 10% advance tax on their annual income under the proposed scheme.
This tax imposition is set to encompass businesspersons across various sectors. Last month, it was reported that following the IMF’s rejection of a fixed scheme for retailers, the caretaker government has concluded the ‘Tax Asaan Application.’ This application aims to collect taxes from small shopkeepers, with the valuation of each shop determined by the FBR.
Confirmed by official sources, the retailer scheme has reached an advanced stage of finalization, and the caretaker government is anticipated to authorize its launch before the stipulated timeframe expires.
It’s worth noting that historical attempts to integrate millions of retailers into the tax net through various schemes have faced challenges and encountered setbacks.
