Govt decides to collect up to Rs10,000 monthly tax from retailers

The Federal Board of Revenue (FBR) has decided to bring retailers into the tax net as it will expand the fixed tax scheme to major cities of the country.

According to the sources, the FBR has planned to extend the retail tax scheme to 42 cities with a minimum of Rs100 to Rs10,000 in the account of fixed retailer tax monthly. The tax will be imposed as per the valuation rates of shops.

The fixed retailer tax aims to collect Rs50 billion from retailers in FY2024-25 to fulfil the International Monetary Fund (IMF) condition, sources added.

Sources said the board already collected details about the valuation rates of all 42 cities, and it was shared with the representative of the retailer association.

A minimum of Rs1200 to Rs120,000 per annum tax from retailers was proposed depending on the valuation of rates.

“A detailed work has been done by the FBR and shared with retailers. Now the FBR chairman has taken the firm stand that all retailers will have to contribute to national kitty,” said the sources.

Chairman FBR strictly directed the officials to collect tax from retailers and that "they would have to add their part in the national exchequer".

The tax body did not share details on the extension of the Tajir Dost Scheme to 42 cities from six. However, the retailer representatives were informed about the tax implementation.