FBR is considering options to bring traders into the tax net

• FBR is thinking of unveiling simplified fixed scheme with base.
• The board seeks to bring 3.6 million retailers into the tax net.
• Only 78 retailers were enrolled in the Tajir Dost Scheme.

ISLAMABAD: Amid the dismal performance of the Tajir Dost Scheme which enrolls only 44,830 retailers, the Federal Board of Revenue (FBR) is mulling options to unveil a simplified fixed scheme based on shop valuation to bring 3.6 million retailers into the tax fold. net.

All plans to bring retailers into the tax net have failed miserably in more than three decades at least since the 1990s.

There is a need to do something different to create any impact, but if another routine program is to be introduced, it will fail another time in the country’s history.

“We are considering different options to bring 3.6 million retailers into the tax net and this time the FBR is planning to come up with different slabs based on the valuation of the shops. A flat tax may be introduced to bring them into the tax net,” confirmed top official sources speaking to The news the manufacture.

Property valuation, the sources said, was underway in major cities and towns, which may be notified within this month. Based on the valuation of different markets in different cities, the FBR plans to introduce a fixed slab-based system for retailers in the tax net.

“Different features of the fixed plan for retailers are under study and will be rolled out soon probably next week,” the official said.

FBR launched the Tajir Dost scheme on a voluntary basis in selected six cities with a deadline of April 30, 2024. However, only 78 retailers have registered them.

The FBR then implicated the leader of the trader Naeem Mir and continued the registration process. To date, only 44,830 retailers have opted into the program out of over 3 million retailers across the country.

The power of the shutter has always forced the ruling elites and the FBR to take strict action against the retailers. The FBR had taken steps to collect taxes through electricity bills and size of shops in the recent past, but all efforts failed.

Point of Sale (POS) machines were installed in branded stores but lack of proper technology, operational framework and piecemeal approach in FBR ranks resulted in failure of all IT based solutions including POS, Track & Trace and Digital Invoicing. a miserable way.

Senior FBR officials argued that there was no element of a coherent vision to document the economy in our country as there was no mechanism to register any retail outlet. So the state is basically assuming that the FBR will register every retailer and then bring them into the tax net without a designated workforce.

FBR has decided to start the fixed schedule of retailers next week. Earlier, it was envisaged that a meager amount of Rs 12,000 would be charged by retailers on the basis of Rs1,000 per month. Retailers should complete a simplified form.

The government had informed the International Monetary Fund (IMF) that to facilitate sustainable medium-term adjustment, the government would focus on mobilizing significant additional revenue through policy reforms to broaden the tax base, particularly in undertaxed sectors. strengthen revenue management; and incentivize greater and more balanced fiscal efforts by the provinces.

The execution of income tax returns and the collection of the minimum advance income tax will begin on 1 July 2024.

Originally published on The news