Staff Report
ISLAMABAD: The Federal Board of Revenue (FBR) has launched a compulsory tax registration scheme targeted at retailers and wholesalers in major cities of Pakistan.
The scheme has been launched in Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar and will come into effect from April 1, as per an FBR notification. However, traders will make their first tax payments on July 15, said the notification. The tax collector body of Pakistan gave a month, with the last date on April 30, to traders and wholesalers to register.
According to the FBR, the scheme called “Special Procedures for Small Traders and Shopkeepers will “apply to the traders and shopkeepers operating through a fixed place of business including a shop, store, warehouse, office or similar physical place (herein referred to business premises) located within the territorial civil limits including cantonments in the cities as specified in the Schedule to this scheme for registration and payment of minimum advance tax.”
The FBR will launch a Tajir Dost application to create a database of traders and shopkeepers for registration and advance income tax payment. As per the scheme, traders are bound to pay monthly advance tax on the 15th of each month. They will have to pay a minimum of Rs1,200 per annum income tax even if their income is below the income tax threshold.
\Meanwhile, the FBR announced a 25% tax incentive for traders who pay their full tax in advance before the due date of every month.
Dealers, retailers, manufacturer-cum-retailers, importer-cum-retailers, or any person involved in the supply chain of goods will come under the ambit of the said scheme, as per the FBR notification.
Earlier, Non-filers are set to face additional taxes on sale and purchase of plots as the Federal Board of Revenue (FBR) has assured the International Monetary Fund (IMF) of incorporating real estate sector into the tax framework. The federal government will increase the taxes on non-filers for sale and purchase of plots and register the housing societies. In order to document the real estate sector, it has been proposed to use banking channel instead of cash transactions. Sources added that all records, including cutting and purchasing, of plots in housing societies will be registered.
A coordination report on taxation of the real estate sector in the Centre and provinces will be submitted to global lender. Moreover, data of property agents and sale and purchase of plots will be registered in Federal Board of Revenue (FBR), sources added.
