- February 3, 2024
- Posted by: Muhammad Afzaal
- Category: RBS News
According to a news report on January 25th, the Federal Board of Revenue (FBR) is introducing a simple tax plan for the retail sector. This is part of their plan to get more businesses to join the official economy and reduce the size of the informal sector.
They believe this plan could bring in between PKR 400 billion to PKR 500 billion in extra taxes. The details of the plan have been shared with the government, but it needs their approval before it can start. A top tax FBR official explained that the goal of the plan is to make it easier to figure out how much money shop owners make.
Even though shops and stores contribute a big part of the country’s total money (18%). However, they only pay a small part of the taxes (4%). The government wants to fix this by getting them to pay more taxes. Additionally, they’ve been trying to do this for a while, but so far, it hasn’t worked as well as they hoped.
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