Islamabad: The federal government has introduced a mandatory registration scheme for retailers and wholesalers doing business in six major cities of Pakistan to increase the tax net and tax to GDP rates.
FBR has issued a notification for the implementation of the scheme from April 1, according to which from April 1 to April 30, all traders will have to be registered with the Trader Dost app introduced by FBR and from July 1, part of the scheme will be implemented. 3 will be applied under which advance tax collection will be started from traders.
FBR has fulfilled another condition of IMF by introducing the scheme. According to the FBRK notification, the scope of the scheme has been extended to retailers, wholesalers, dealers, manufacturers-cum-retailers, importers-cum-retailers.
The scheme has been implemented in Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar. The notification also lays down the procedure for levy and collection of tax on the traders and it is also said that action will be taken under Section 182 against the traders who are not registered on the Trader Dost app by April 30.
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.
25% discount in income tax will be given to traders who pay full income tax before time, all activities will be done under a separate computerized system, tax will be determined on the basis of annual rent of business premises.
