FBR Implements Direct Tax Plan for Retailers

FBR Implements Direct Tax Plan for Retailers

Islamabad: The Federal Bureau of Revenue (FBR) is planning a tax scheme for the retail sector. This measure is being implemented to achieve the tax targets for the current fiscal year. The effort is to bring more potential tax givers into the tax net. IMF has also been tipping FBR to put tangible efforts into widening the tax base to alleviate the struggling economy of Pakistan.
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As per the sources, the FBR aims to bring more retailers into the tax net and also ease the procedure for retailers, traders, and other individuals. The process will also be able to estimate the correct income of the traders. The potential impact of the initiative will offer a boost in the tax revenue of the country ranging up to PKR 500 billion.
FBR forwarded all the detailed plan to the Federal Cabinet and waiting for the prompt response. The FBR explained to the Cabinet that this scheme will improve tax revenue of Pakistan while widening the tax net and making the income assessment of traders more convenient. Read more: PM Kakar Stresses to Accomplish CPEC Projects

Moreover, the retail sector is considered to be offering an 18% contribution to the Gross Domestic Product (GDP), but the overall contribution remains just at 4%. There were previous efforts to bring the sector into the tax net, but all in vain. This is also the main reason that the FBR has taken this step awaiting Cabinet`s approval.

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