ISLAMABAD – The Federal Board of Revenue (FBR) on Saturday announced the commencement of registration for the retailers and the shopkeepers in six major cities.
“The work has been started and proper registration will start from April 1,” said the sources.
The retailers in Islamabad, Karachi, Lahore, Quetta, and Peshawar will initiate registration from April 1st, with tax collection starting from July 1st, 2024.
The FBR will integrate the Online Market Place Platform into the tax net under this scheme.
The special procedures have been recommended for small traders and shopkeepers in the SRO issued by the FBR.
Under th scheme, every retailer and shopkeeper will have to apply for registration under Ordinance 181, and this can be done through the Tax App by April 30th.
A minimum monthly advance tax will be applicable to every individual based on their income.
If the annual advance tax is zero, such individuals will have to pay an annual fee of Rs. 1200.
However, if someone is exempt from income tax for any reason, this will not apply to them. If someone pays their advance tax in full or balances it, their overall advance tax will be reduced by 25 percent. It should be noted that the FBR finalized the Merchant Friendly Scheme two months ago to bring traders into the tax net.
The FBR developed the ‘Merchant Friend’ mobile app for the purpose of implementing the scheme and registering traders.
The traders outside the tax net will be registered through the Merchant Friend app.
The FBR would receive records of shopkeepers’ income through this app.
The shopkeepers would be taxed annually based on their income, collected monthly. The tax will be imposed on the size of the shop and annual income, collected on a monthly basis.
The sources.said that the businesses and individuals associated with all sectors would be subject to tax under the scheme.
