FBR to Collect Taxes from Shopkeepers in 24 Cities

Pakistan, July 24, 2024: The Federal Board of Revenue (FBR) will collect taxes from shopkeepers in 24 cities across the country starting next month. The board has already announced, bringing small businesses into the formal economy to strengthen the framework and enhance transparency.

The 24 cities( including Karachi, Lahore, Islamabad, and Faisalabad) are selected based on their commercial activity and higher tax revenue. Shopkeepers will be categorized according to the type and size of their business. Moreover, the notification issued by FBR also includes the names of roads where retailers are eligible to pay tax. The amount of tax varies on the size, location, and market value of their business.

Also Read: FBR Integrates Nearly 9,000 Big Retailers Into POS System

As per the notification, the term “shopkeeper” includes wholesale dealers, dealers, manufacturers, retailers, distributors, and importer-cum-retailer. Also, any person who is involved in the supply chain of goods or combines the retail and wholesale activity with any other business activity.

FBR will deploy teams to assist with compliance. Moreover, measures will be taken in case of non-compliance, and the initiative will be enforced efficiently.

FBR teams might face resistance due to the enforced operation, as many small shopkeepers are still not willing to cooperate. However, authorities are firm about providing possible guidance and assistance to shopkeepers and making the tax collection process smooth.

By encouraging a compliance culture and expanding the tax net, the authority aims for sustainable economic growth.

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