Every shopkeeper will pay income tax of Rs.1200 per annum, FBR

The Federal Board of Revenue (FBR) has issued a notification for the draft scheme for compulsory registration of traders.

FBR has issued a notification for mandatory registration scheme of dealers, retailers, manufacturers, importers and retailers.

Registration will be done initially in 6 major cities from April 1, non-compliance will be compulsorily registered in the National Business Registry.

According to FBR, 6 major cities of the country include Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar.

A central database of traders and shopkeepers will be developed through FBR’s Tajir Dost app, stakeholder feedback was also sought on the mandatory registration scheme.

According to FBR, the tax will be collected from the traders based on the annual rental value of the shop. Under the scheme, every shopkeeper will have to pay income tax of at least Rs 1200 per year. The first tax collection will be from July 15.

25% discount will be given in case of payment of tax before the 15th of every month, while businessmen who submit income tax return for 2023 will get discount.