The Federal Board of Revenue (FBR) has decided to expand the tax net and increase government revenue by collecting monthly taxes of Rs100 to Rs10,000 from retailers and small shopkeepers, reports said on Saturday.
The FBR has also decided to extend the Fixed Retailers Scheme to 42 more cities. Taxes will be collected based on the value and income of the shops.
The expansion of the tax net is necessary to meet the conditions of the $7 billion loan from the International Monetary Fund (IMF).
The FBR is taking various measures for this, including the registration of small shopkeepers.
As per the IMF conditions, there will be an increase in income tax on salaried individuals, as well as the imposition of taxes at the retail and small shopkeeper level.
The FBR has a target of collecting Rs50 billion from small shopkeepers during the current fiscal year.
Registration of small shopkeepers was initiated a few months ago but faced opposition and concerns from the business community.
The business community argues that taxes should be levied based on income and earnings, rather than predetermined standards. Small traders and shopkeepers say they are already facing many problems. The government should also focus on curbing smuggling and provide a business-friendly environment.
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