In its efforts to broaden the tax net, the Federal Board of Revenue (FBR) has finalized a scheme to slap tax on retailers in the country, well-placed sources said on Thursday. As per details, the FBR will ‘impose’ tax on retailers operating in four provincial capitals of Pakistan in the first phase. The move will generate income of around Rs100 bln. Sources knowing the matter informed that the tax will be slapped on retailers according to the size of the shop and yearly income. The FBR is waiting for the approval from the caretaker government to impose tax on the retailers across Pakistan. The imposition of tax on 3.5 mln retailers across Pakistan will add Rs300 bln revenue to the national kitty, the sources said. Earlier, the Federal Board of Revenue (FBR) created history by collecting Rs1.021 trillion in December 2023 and after adjusting refunds of Rs38 billion issued during the month, reached net collection of Rs984 billion. Targets for the month as well as for the first six months of the current financial year were also surpassed, said a press release. The target for the first six months was Rs.4425 billion (as agreed with IMF), which was surpassed by 43 billion and recorded a collection of Rs.4468 billion.

Credit: Independent News Pakistan (INP)