New Tax Scheme Imposed on Small Retailers Across Pakistan

Islamabad:The Federal Board of Revenue (FBR) has introduced a new tax scheme targeting registered small shopkeepers and retailers in 42 major and minor cities of Pakistan. According to the notification issued by FBR, retailers in these cities will now be required to pay monthly taxes ranging from Rs. 100 to over Rs. 20,000, depending on the location and size of their shops.

The scheme, effective from July 1, will apply to cities including Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, DG Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Layyah, Lodhran, Mandi Bahauddin, Manshera, Mardan, Mirpur Khas, Multan, Nankana Sahib, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur, and Toba Tek Singh.

Under this revised scheme, it has been revealed that any individual owning a shop or kiosk measuring 50 square feet or less, or being a temporary shop owner, will be liable to pay an annual fixed advance tax of Rs. 1,200. The monthly tax installment for retailers will cover wholesale traders, dealers, distributors, food sellers, small-scale manufacturers, and individuals engaged in both food and wholesale activities combined with other business pursuits.

This new taxation initiative aims to streamline revenue collection from small-scale commercial entities across Pakistan’s urban landscape, while ensuring compliance with fiscal regulations.