The Federal Board of Revenue (FBR) has introduced a new tax plan, requiring retailers in 42 cities to pay a monthly tax of up to Rs. 20,000. This move aims to broaden the tax base and increase revenue collection from the retail sector.
The new plan is part of the government’s efforts to document the economy and bring more businesses into the tax net.Under the new plan, retailers will be required to pay a fixed monthly tax, ranging from Rs. 5,000 to Rs. 20,000, depending on their business size and location.
The tax will be applicable to retailers operating in major cities, including Karachi, Lahore, Islamabad, and others. The FBR believes that this plan will help to reduce tax evasion and increase compliance among retailers.
The new tax plan has been met with mixed reactions from retailers, with some expressing concerns about the additional burden on their businesses.
However, others see it as an opportunity to formalize their operations and benefit from the government’s incentives for tax-compliant businesses.
The FBR has assured that the tax rates will be reviewed and adjusted based on feedback from the retail community.
