The Federal Board of Revenue (FBR) has announced plans to broaden the tax base by imposing monthly taxes ranging from Rs100 to Rs10,000 on retailers and small shopkeepers, aiming to boost government revenue.
This move includes extending the Fixed Retailers Scheme to 42 additional cities, with taxes determined by the value and income of the shops.
This expansion is part of efforts to meet the conditions of a $7 billion loan from the International Monetary Fund (IMF). The FBR’s strategy involves the registration of small shopkeepers and increasing income tax on salaried individuals. The goal is to collect Rs50 billion from small shopkeepers in the current fiscal year.
While registration began a few months ago, it faced opposition from the business community, which advocates for taxes based on actual income rather than fixed standards. Small traders argue that they already face significant challenges and urge the government to also address issues like smuggling and to create a more business-friendly environment.
