FBR’s Sales Tax Scheme for Big City Retailers
In a strategic move to boost revenue, the Federal Board of Revenue (FBR) is gearing up to introduce a sales tax on retailers in major cities, with Islamabad, Karachi, Lahore, Peshawar, and Quetta in the spotlight.
Insiders within the FBR have shared with ProPakistani that this initiative seeks to generate substantial revenue, with an initial estimate of Rs. 100 billion expected from retailers in major cities. The ambitious plan envisions a potential increase to Rs. 300 billion when the sales tax is rolled out nationwide.
The comprehensive scheme will initially target approximately 3.5 million retailers across the country, focusing on Islamabad and the four provincial capitals in its initial phase. The FBR’s revenue collection strategy considers key factors such as shop size and annual income, aiming to collect over Rs. 300 billion through monthly tax assessments.
Pending approval from the federal government, the FBR’s meticulously prepared scheme is poised for launch. Notably, this initiative transcends sector limitations, encompassing businesses and individuals across all sectors under the ambit of the new sales tax.
As this significant tax reform awaits implementation, it marks a pivotal step by the FBR to bolster revenue streams and ensure a fair and comprehensive taxation system for retailers across major cities in Pakistan. Stay tuned for updates on this transformative fiscal development.