ISLAMABAD: The Federal Board of Revenue (FBR) is considering a new proposal of traders to collect advance tax on the basis of category of businesses in the market.

Sources told Business Recorder that the traders wanted to pay tax on annual basis. However, the traders have to pay advance tax on quarterly basis and first instalment pertaining to July-September (2024-25) would be paid in October 2024.

The category-wise collection of tax would be easy as compared to door to door survey of the markets which is a time consuming process. Therefore, one of the proposals is to collect tax on the basis of businesses in the market, they added.

Fixed tax: Traders ready to pay Rs5,000 per month

In this regard, the FBR will determine major categories of businesses. The category-wise advance tax could be fixed for all kinds of businesses. The category of business-wise shops would be determined.

On the other hand, the monthly fixed tax payment mechanism may be replaced with the quarterly tax payment with necessary amendments in the FBR’s notification.

Talking to Business Recorder here on Monday, Chief Coordinator of the Tajir Dost Scheme Naeem Mir said that presently the only question is to finalise the mechanism for collection of tax from traders. The mechanism should be acceptable both to the FBR as well as traders. Secondly, the amount to be paid by the traders on quarterly basis would be determined.

Traders have demanded to deposit advance tax on annual basis which would be difficult to be paid by the traders, he said.

He said that the tax would be adjustable to be paid by the traders. However, the FBR has agreed to reduce the upper slabs of fixed tax of Rs 60,000 to a reasonable level.

Traders’ representatives and the FBR are regularly convening meeting for resolution of their issues including tax payments.

The FBR will accept all genuine demands of traders including any amendment in the relevant notification of Tajir Dost Scheme, he added.

Copyright Business Recorder, 2024