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FBR mulling options to penalise unregistered traders


Representational picture displaying a vendor sitting at his store. — Reuters/File
  • Registration for Tajir Dost Scheme will finish on April 30.
  • Govt mulls motion after lackluster response from retailers.
  • FBR planning to make companies non-registered unviable.

ISLAMABAD: With the registration of solely over 105 retailers within the ongoing Tajir Dost Scheme, the FBR is mulling over totally different choices to abolish the Non-Lively Taxpayer Listing (Non-ATL) and slap exorbitant fee of 10-15% for promoting to unregistered retailers.

The FBR is deliberating upon totally different choices for making companies non-registered unviable as a substitute of chasing 3.6 million retailers within the nation.

It may solely be carried out by means of drastic administrative measures.

Therefore, choices are into account to provide you with the imposition of a extremely exorbitant fee on the sale of products on the stage of wholesalers/distributors within the vary of 10 to fifteen% together with submission of Computerised Nationwide Id Playing cards (CNICs) for all patrons of products in bulk.

If this scheme of issues will get permitted on the political stage, retailers with out coming into the tax web will be unable to run their companies as commercially viable.

“The FBR is planning to drift an concept earlier than the Minister for Finance Muhammad Aurangzeb and if he grants his nod, the FBR can suggest adjustments within the tax legal guidelines on the eve of the upcoming price range 2024-25,” high official sources confirmed whereas speaking to Prime Time News24 right here on Wednesday.

Registration for the continued Tajir Dost Scheme will finish on April 30, 2024.

Beneath Part 236G of Revenue Tax regulation, there may be an advance withholding tax of 0.1% on gross sales to distributors, sellers and wholesalers who’re underneath the Lively Taxpayer Listing (ATL) and there may be 0.5% on non-ATL.

Beneath Part 236H, there may be an advance tax on gross sales to retailers; there may be an advance tax of 0.5% on ATL retailers and 1% tax on non-ATL retailers.

Now it’s into account to maintain withholding tax on the identical charges for ATL on sale to distributors, sellers and wholesalers whereas tax on non-ATL is likely to be slapped within the vary of 10 to fifteen%.

The identical might be utilized underneath Part 236H the place the ATL taxpayers’ fee will stay the identical whereas for non-ATL, the speed is proposed to be jacked as much as 10 to fifteen%.

Official knowledge of the FBR exhibits that round 0.5 million sellers, distributors, wholesalers and retailers exist underneath each provisions of tax legal guidelines within the form of ATL and non-ATL. 

Now it is usually proposed that the CNICs requirement is likely to be made necessary for all producers and all through the availability chain in order that the unregistered may very well be penalised with the next fee of advance withholding tax.


Initially printed in Prime Time News24

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