ISLAMABAD: The Federal Board of Revenue (FBR) has developed a new software for taxation of retailers under the new documentation scheme for the retail outlets across Pakistan.
Sources told Business Recorder that so far the notification of the new scheme has yet not been issued. However, preparations are under way to implement the new scheme across the country. The technical side of the scheme should be strong to tax retailers with the help of IT system and integration of small retailers.
The FBR intended to implement the new scheme for retailers in major cities including Karachi, Lahore, Islamabad, Peshawar and Quetta.
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According to one estimate, nearly 3.5 million retailers can contribute a huge amount of revenue nearly Rs 100-200 billion under the new scheme.
In the first phase, the documentation of the retailers would be done in the federal capital and four provincial capitals.
The FBR plans to collect a total revenue exceeding Rs100-150 billion from documentation of retailers in view of factors like size of the shops and their annual income.
The FBR intended to use the indicative income of retailers, based on the location of their shops and rental payments, to assess the tax potential. It has proposed to exercise legal powers available under section 99B of the Income Tax Ordinance 2001. The section 99B defines special procedures for small traders and shopkeepers. The said provision empowers the Finance Minister to impose tax through a notification in the official Gazette.
Board with the approval of the Minister in-charge may, by notification in the official Gazette, prescribe special procedure for scope and payment of tax, filing of return and assessment in respect of such small traders and shopkeepers, in such cities or territories, as may be specified therein, FBR added.
Copyright Business Recorder, 2024
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