FBR Announces Taxation Plans for Retailers in Five Major Cities

The Federal Board of Revenue (FBR) is set to impose taxes on retailers in five major cities, including Karachi, Islamabad, Lahore, Peshawar, and Quetta. Sources suggest that this move aims to generate approximately Rs100 billion in revenue from 3.5 million retailers in these cities. The FBR has prepared a scheme for this purpose, targeting retailers in the provincial capitals and the federal capital in the initial phase.

The taxation system will be based on the size of the shop and its annual income volume, with collections scheduled monthly. The scheme is ready for launch pending approval from the government. Retailers can expect a 10% advance tax on their annual income, applicable to businesspersons across various sectors.

Last month, it was reported that the caretaker government, following the International Monetary Fund’s rejection of a fixed scheme for retailers, had finalized the ‘Tax Asaan Application.’ This application is designed to collect taxes from small shopkeepers based on the valuation of each shop determined by the FBR. With the retailer scheme nearly finalized, the caretaker government is expected to grant permission for its launch within the stipulated timeframe.