The Federal Board of Revenue (FBR) is gearing up to impose a sales tax on retailers in major cities i.e. Islamabad, Karachi, Lahore, Peshawar, and Quetta.
FBR sources told ProPakistani that this move is expected to generate a substantial revenue of Rs. 100 billion from retailers in big cities which may rise to Rs. 300 billion when the sales tax is implemented nationwide.
The FBR has set its sights on approximately 3.5 million retailers nationwide for the new initiative. In the initial phase, the tax will target retailers in Islamabad and the four provincial capitals.
The FBR plans to collect a total revenue exceeding Rs. 300 billion from this taxation, taking into account factors such as the size of the shops and their annual income.
Sources said the sales tax will be calculated based on the size of the business and its yearly earnings. This tax is slated to be collected every month. The comprehensive scheme has been meticulously prepared and is poised for launch pending the federal government’s green signal.
It is noteworthy that this initiative is not limited to a specific sector, as businesses and individuals across all sectors will be subject to the new sales tax.
