LAHORE: The Federal Board of Revenue (FBR) is considering a new proposal from traders to collect advance tax based on the category of businesses in the market. This comes after traders expressed their desire to pay tax on an annual basis instead of the current quarterly system.
Sources told that the traders have proposed a category-wise collection system, which would be easier to implement than the current door-to-door survey of markets.
The FBR is currently determining the major categories of businesses and will fix the advance tax accordingly.
Traders’ representative Naeem Mir stated that the only remaining question is to finalize the mechanism for collecting tax, which should be acceptable to both the FBR and the traders.
He added that the amount to be paid by the traders on a quarterly basis would also be determined.
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The FBR has agreed to reduce the upper slabs of fixed tax from Rs 60,000 to a more reasonable level. Both parties are regularly meeting to resolve issues and reach an agreement on tax payments.
This new proposal aims to simplify the tax collection process and make it more convenient for both the FBR and traders. It also seeks to address the concerns of traders who find the current system cumbersome and burdensome.
