Finance Minister ready to tax retailers, wholesalers including fruits, vegetables, meat sellers

Islamabad: The Federal Board of Revenue (FBR) will bring five major categories of retail trade under the trader-friendly registration scheme with effect from April 1, 2024.

Federal Finance Minister Muhammad Aurangzeb has given his consent in this regard and a declaration will be issued anytime now, reportedly.

These five major categories include wholesalers, fertilizers, pesticides and chemicals dealers, retailers, furniture and decoration showrooms, jewelry, cosmetics, medical, hardware stores and meat, vegetable and fruit shops.

In the initial phase these businesses will be registered in six selected cities. FBR's ‘Trader Friendly Scheme’ registration will be effective in four metropolitan cities Karachi, Lahore, Peshawar, Rawalpindi, Quetta and Islamabad and tax collection will start from July 1, 2024.

On the other hand, FBR has so far collected Rs850 billion in tax and it has ensured that selected tax offices and bank branches remain open on Saturdays and Sundays to ensure tax collection.

The FBR is aiming to achieve a monthly tax target of Rs879 billion by March 2024.

Under the Trader Friendly Scheme, officials said that under the registration drive, all non-filers and unregistered traders and shopkeepers under the Income Tax Ordinance 2001 will be mandated to file their taxes under the Trader Friendly Scheme and register within the Tax Easy app through mobile or FBR web portal or register by visiting FBR's Tax Facilitation Centers.

The last date for this registration will be April 30, 2024. Those who fail to register will be subject to financial penalties under Section 182 of the Income Tax Ordinance. Persons who are required to be registered include traders, shopkeepers, wholesalers, retailers, dealers, manufacturers who are also engaged in retail sales. Importers who also do retail or those who carry on both retail and wholesale business activities or anyone who is part of the supply chain of goods are included.

If a person wants to pay the total advance tax together, then he will be given a 25% monthly discount on the monthly advance tax payment. If a non-filer files a tax return, he will be given a 25 percent discount on payment of advance tax provided he files the tax return before July 15, 2024.

And if the non-filers submit their tax returns by July 15 and also deposit 12 months of advance tax in one lump sum, then they will be given 50% tax discount. Tax lawyers, tax accountants and tax practitioners are required to be registered under the existing trader friendly scheme.

It is pertinent to note that there is also an Urdu version of this mobile app.