FBR launches tax registration scheme for retailers in major cities

The Federal Board of Revenue (FBR) has initiated a mandatory tax registration scheme for retailers and wholesalers in six major cities, effective from April 1, 2024. 

As per a statutory regulatory order (SRO) issued by the FBR, the retailers' registration aligns with the conditions set by the International Monetary Fund (IMF) for approving a $1.1 billion loan tranche.

Retailers and wholesalers in Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar must register under this new scheme, which also targets other supply chain participants. 

The scheme mandates registration and advance income tax payment, with the first payment due on July 15.  Non-compliance by April 30 will lead to automatic registration by the FBR. A centralised database will facilitate tax payments and registration, with a minimum annual income tax requirement of Rs1,200 for all traders.

Furthermore, the FBR is offering a 25% tax incentive for traders who pay their taxes in advance or file returns for 2023. Tax payments are based on the annual rental value of business premises, set at 10% of the market value, with specific valuation guidelines provided by the FBR.