| Islamabad: The Federal Board of Revenue (FBR) is rolling out a straightforward tax scheme aimed at the retail sector, as part of its efforts to bring more businesses into the formal economy fold and curb the informal sector’s size, as stated in a news source on January 25.
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As revealed in the details, the FBR aims to simplify tax procedures for traders, retailers, and specific individuals, making it easier to estimate their incomes. The projected outcome of this initiative suggests a potential boost in income tax revenue, ranging from PKR 400 billion to PKR 500 billion.
The proposed scheme’s details were presented to the federal cabinet, awaiting endorsement. A senior tax official explained that this scheme intends to streamline the assessment of traders’ and retailers’ incomes.
Read: FBR sets deadline for cement Track & Trace integration
Despite contributing significantly to the gross domestic product (18%), the retail and wholesale sector’s tax contribution remains disproportionately low at just 4%. Recognising this gap, the government has been persistently working to integrate this sector more effectively into the tax system. However, previous efforts have not yielded the desired outcomes. |
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