ISLAMABAD: The Federal Board of Revenue (FBR) decided to extend the scope of the fixed retailers scheme to 42 cities and impose a monthly tax ranging from Rs100 to Rs10,000 based on the value of the shops, the sources said on Saturday.
Under the IMF program, the FBR aims to collect Rs50 billion from retailers in the current financial year.
High-level official sources said that the FBR shared its detailed work on the valuation rates of all 42 cities with representatives of retailers and proposed an annual tax ranging from a minimum of Rs1,200 to a maximum of Rs120,000, depending on the value of the shop nationwide.
The FBR has prepared detailed workings in this regard, and the FBR chairman has taken a firm stance that retailers must contribute to the national treasury.
Although the FBR has not yet notified that the scope of the business-friendly scheme is being expanded from 6 to 42 cities, it has informed representatives of retailers about the new rates.
In a related development, Prime Minister Shehbaz Sharif is likely to visit the FBR office today, where he will be briefed on the FBR’s digitization program, and a way forward will be sought for end-to-end connectivity to broaden the tax base.
