Major Changes Expected in FBR’s Trader-Friendly Scheme

Islamabad: Major Changes Expected in FBR’s Trader-Friendly Scheme, Shifting Focus to Large Retailers
The Federal Board of Revenue (FBR) is expected to introduce significant changes in its trader-friendly tax scheme. Sources suggest that instead of collecting taxes from small traders, FBR will now focus on taking action against large retail businesses. The FBR plans to register large traders based on the analysis of returns, data security, and commercial electricity consumption data.
The current policy of fixed taxes per retail outlet is expected to be suspended, and there are questions about whether the IMF has approved revisions to this policy.
It is important to note that the trader-friendly scheme has faced significant challenges in meeting revenue targets. In the first quarter, the target was set at 10 billion rupees, with a target of 23.4 billion rupees in tax collection through TDS in the second quarter. The FBR has agreed with the IMF to collect 50 billion rupees via TDS during the current fiscal year.