In a bid to fulfill yet another condition set forth by the IMF, the Federal Board of Revenue (FBR) has announced the initiation of the registration process for retailers and shopkeepers in six major cities across Pakistan.
The registration process, slated to commence on April 1st, aims to bring retailers and shopkeepers into the tax net, with tax collection set to begin from July 1st, 2024. The cities where the registration process will kick off include Islamabad, Karachi, Lahore, Quetta, and Peshawar.
Under the ambit of this initiative, the FBR will integrate the Online Market Place Platform into the tax network, marking a significant step towards enhancing transparency and efficiency in tax collection.
Special procedures have been devised for small traders and shopkeepers, as outlined in the Special Revenue Order (SRO) issued by the FBR. As per the scheme, every retailer and shopkeeper is mandated to apply for registration under Ordinance 181, with the deadline for registration set for April 30th. The registration process can be conveniently carried out through the Tax App.
A minimum monthly advance tax will be levied on individuals based on their income bracket. For those with an annual advance tax of zero, an annual fee of Rs. 1200 will be applicable.
However, individuals exempt from income tax will be spared from this requirement. Moreover, those who pay their advance tax in full or balance it will enjoy a 25 percent reduction in their overall advance tax liability.
The FBR had earlier unveiled the Merchant Friendly Scheme aimed at bringing traders into the tax net. To facilitate the implementation of this scheme and streamline the registration process, the FBR introduced the 'Merchant Friend' mobile app. Traders outside the tax net will also be registered through this user-friendly app, which will enable the FBR to access records of shopkeepers' income.
On March 20, the International Monetary Fund (IMF) has reached a Staff-Level Agreement (SLA) with Pakistan on the final review of a $3 billion bailout package.
Following approval from the Fund's Executive Board, Pakistan is set to receive $1.1 billion, marking the final tranche of the bailout package secured last summer. The agreement underscores Pakistan's commitment to implementing robust policy and reform measures to foster a strong and sustainable economic recovery.
