ISLAMABAD: The government has proposed a mandatory registration scheme for retailers and wholesalers doing business in six major cities of Pakistan to widen the tax net.
The FBR has also issued a legal framework for the implementation of the scheme from April 1, thus Pakistan has fulfilled one more condition of the IMF, FBR has allowed stakeholders to express their suggestions and concerns regarding the scheme. Seven days have been given.
According to the notification issued by FBR, the scope of the scheme has been extended to retailers, wholesalers, dealers, manufacturers-cum-retailers, importer-cum-retailers or such persons who are involved in any such activity. It will be done in Lahore, Islamabad, Rawalpindi, Quetta and Peshawar.
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 scheme was first presented during the reign of General Pervez Musharraf, but it was delayed. The Nawaz League government could not implement it, but now the Special Investment Facilitation Council has taken up the responsibility of implementing this scheme.
According to the notification, the scheme will be implemented from April 1, but the traders will pay the first tax in July. Given, which will be by April 30, traders who do not register themselves by the given time, will then be compulsorily registered in the National Business Registry.
Every trader is 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 then he has to pay 1,200 rupees as income tax annually. 25% discount in income tax will be given to the traders, all the activities will be carried out under a separate computerized system, the tax will be determined on the basis of the annual rent of the commercial premises.
