FBR launches tax registration scheme for retailers in major cities

Govt targets wholesalers and retailers in Lahore, Karachi, Islamabad, Rawalpindi, Quetta, and Peshawar

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.

Monitoring Desk
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1 COMMENT

  1. The FBR’s new mandatory tax registration scheme for retailers and wholesalers in major cities is a decisive move to enhance tax compliance and revenue collection. Aligning with IMF conditions, it signals the government’s commitment to economic reform. Incentives for early tax payments and clear guidelines for tax assessment promote transparency and fairness in the tax system, fostering a culture of compliance.

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