FBR agrees to review monthly tax rates for retailers

ISLAMABAD: The Federal Board of Revenue (FBR) has agreed to revisit the valuation tables used for determining the monthly advance tax on retailers, following discussions with the All Pakistan Anjuman-e-Tajran, a powerful trade body led by President Ajmal Baloch.

In a meeting with the delegation, the FBR outlined the progress of its “Tajir Dost Scheme,” a programme designed to bring retailers into the tax net by requiring registration and compliance.

According to Business Recorder, despite its rollout, the scheme has seen limited uptake, with only 277 retailers contributing a modest Rs503,632 so far.

Ajmal Baloch, representing the traders, raised concerns over the valuation methodology, highlighting the strain it places on businesses across Pakistan. In response, the FBR proposed forming a joint committee, including both FBR officials and trader representatives, to reassess the valuation tables and address broader concerns within the business community.

The FBR recognised the need for a more balanced tax regime, one that equitably aligns the tax burden between small shopkeepers and larger retail entities.

The board indicated its openness to revising current regulations, suggesting potential amendments that would allow for greater flexibility in tax exemptions and rate adjustments, tailored to the varying scales of retail businesses.

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