The Federal Board of Revenue (FBR) is set to implement a sales tax on retailers in major cities, including Islamabad, Karachi, Lahore, Peshawar, and Quetta, with the anticipation of generating significant revenue. FBR sources disclosed to ProPakistani that this move is projected to yield around Rs. 100 billion from retailers in major cities initially, with the potential to escalate to Rs. 300 billion upon nationwide implementation of the sales tax.
With a focus on approximately 3.5 million retailers nationwide, the FBR aims to roll out the tax initiative in phases, starting with retailers in Islamabad and the four provincial capitals. The tax collection strategy considers factors such as the size of the shops and their annual income, aiming for a total revenue surpassing Rs. 300 billion.
Sources indicate that the sales tax will be calculated based on the business size and yearly earnings, collected on a monthly basis. The comprehensive scheme awaits the federal government’s approval before its official launch.
It’s crucial to note that this initiative is not limited to a specific sector, encompassing businesses and individuals across all sectors who will be subject to the new sales tax.
