Islamabad: As part of another IMF condition, the Federal Board of Revenue (FBR) has introduced the “Trader-Friendly Scheme” to bring shopkeepers and small traders into the tax net and collect taxes from them.
The scheme’s scope has been expanded from 6 to 42 cities.
The FBR has also issued a notification regarding the rules for this scheme, which now includes cities such as Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, Faisalabad, Ghotki, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur, and Toba Tek Singh.
Registered traders will need to pay advance tax ranging from 100 to 1,000 rupees per month, determined based on the fair market value of their shops, which the FBR will assess.
According to the FBR, this scheme will apply to small traders, shopkeepers, wholesalers, retailers, manufacturers who are also retailers, and importers who are also retailers.
Traders and shopkeepers can register through the mobile app “Tax Asaan” or the FBR’s web portal. If they do not voluntarily register, the FBR will automatically include them in the National Business Registry.
Initially, the scheme will start in Pakistan’s six major cities: Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, and Quetta.
FBR officials have stated that the collection of the first monthly advance income tax under this scheme began on July 15, with a minimum annual advance tax of 1,200 rupees.