In an effort to meet yet another IMF demand, the Federal Board of Revenue (FBR) has announced the start of the registration procedure for shops and shopkeepers in six major cities in Pakistan.
The registration procedure, which begins on April 1st, intends to bring merchants and shopkeepers into the tax system, with tax collection planned to begin on July 1st, 2024. The registration procedure will begin in Islamabad, Karachi, Lahore, Quetta, and Peshawar.
The FBR will connect the Online Market Place Platform into the tax network as part of this program, which is a significant step toward improving transparency and efficiency in tax collection.
The FBR has published a Special Revenue Order (SRO) outlining special procedures for small retailers and shops. According to the proposal, every merchant and shopkeeper must apply for registration under Ordinance 181, with the deadline set for April 30th. The Tax App allows you to easily complete the registration procedure.
Individuals will pay a minimal monthly advance tax based on their income classification. An annual cost of Rs. 1200 will be levied on individuals who pay no advance tax.
Individuals who are exempt from paying income taxes will not be subject to this obligation. Furthermore, individuals who pay their advance tax in full or in part will receive a 25% reduction in their total advance tax due.
The FBR had previously launched the Merchant Friendly Scheme, which intended to draw traders into the tax net. The ‘Merchant Friend’ mobile app was launched by the FBR to help with the scheme’s implementation and registration procedure. Traders outside the tax net will also be registered using this user-friendly software, which will allow the FBR to access details of shopkeeper revenue.
Iqra Khan