In a strategic move, the FBR has finalized a groundbreaking scheme to impose sales tax on retailers in prominent cities like Islamabad, Karachi, Lahore, Peshawar, and Quetta. FBR finalized this initiative in anticipation to significantly boost revenue, with FBR sources projecting an initial yield of Rs. 100 billion from retailers in major cities. This figure is expected to surge to Rs. 300 billion once the sales tax is rolled out nationwide.
The FBR is eyeing approximately 3.5 million retailers across the country for this innovative taxation approach. The initial phase will focus on retailers in Islamabad and the four provincial capitals, paving the way for a broader implementation later.
Revenue collection under this scheme will be dynamic, considering factors such as the size of the shops and their annual income. The FBR envisions a comprehensive strategy to collect a total revenue exceeding Rs. 300 billion through this taxation, employing a monthly collection model.
Sources reveal that the sales tax calculation will be tailored to the size of the business and its annual earnings, emphasizing a fair and equitable approach. The meticulously prepared scheme is poised for launch pending the green signal from the federal government.
It’s important to note that this initiative transcends specific sectors, encompassing businesses and individuals across all sectors. Stay tuned for updates on this transformative move by the FBR, as it reshapes the landscape of sales tax in major cities and sets the stage for substantial revenue generation.
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