ISLAMABAD: The government has proposed a mandatory registration scheme for retailers and wholesalers doing business in 6 major cities of Pakistan to widen the tax net.
The FBR has also issued a regulatory framework for implementation of the scheme from April 1, thus Pakistan has fulfilled another condition of the IMF. The FBR has given seven days time to the stakeholders to express their suggestions and concerns regarding the scheme.
According to the FBRK notification, the scope of the scheme has been extended to retailers, wholesalers, dealers, manufacturers-cum-retailers, importer-cum-retailers. The scheme will be implemented in Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar.
Under the scheme, every trader will be obliged to pay monthly advance income tax by 15th of every month. If the income of the trader is less than the income tax level, he will have to pay Rs 1,200 per year as income tax. Income tax paying traders will be given 25% discount in income tax, all activities will be carried out under a separate computerized system, tax will be determined on the basis of annual rent of business premises.
It should be remembered that this scheme is also a test case of the political determination of the government, although the implementation of this scheme has been announced many times before, the first time this scheme was presented during the reign of General Pervez Musharraf, but it has been delayed. However, the Nawaz League government could not implement it, but now the Special Investment Facilitation Council has taken up the responsibility of implementing this scheme.
