The Federal Board of Revenue (FBR) announced the initiation of registration for retailers and shopkeepers in six major cities. Sources confirmed that the process has commenced, with formal registration scheduled to begin on April 1.
Retailers in Islamabad, Karachi, Lahore, Quetta, and Peshawar will start their registration from April 1, and tax collection will commence from July 1, 2024. The FBR will incorporate the Online Market Place Platform into the tax network as part of this initiative.
Special procedures have been outlined for small traders and shopkeepers in the SRO issued by the FBR. Under this scheme, every retailer and shopkeeper must apply for registration under Ordinance 181, which can be completed through the Tax App by April 30.
A minimum monthly advance tax will be applicable to individuals based on their income. Those with zero annual advance tax will be required to pay an annual fee of Rs. 1200, unless exempt from income tax. Individuals paying their advance tax in full or balancing it will receive a 25 percent reduction in their overall advance tax.
The FBR had previously finalized the Merchant Friendly Scheme to bring traders into the tax net. They developed the 'Merchant Friend' mobile app for implementing the scheme and registering traders, including those outside the tax net. The app will provide records of shopkeepers' income, enabling the imposition of taxes based on shop size and annual income collected monthly.
Sources confirmed that businesses and individuals across all sectors will be subject to taxation under this scheme.
