In a bid to broaden the tax base, the government of Pakistan is working on a proposal for a mandatory registration scheme targeting retailers and wholesalers operating in six major cities across the country.
The Federal Board of Revenue (FBR) has rolled out a legal framework for the implementation of the scheme, effective from April 1, thereby fulfilling a key condition set forth by the International Monetary Fund (IMF). As part of the initiative, stakeholders are invited to provide feedback and raise concerns regarding the scheme within a stipulated seven-day period.
According to the official notification issued by the FBR, the ambit of the scheme encompasses retailers, wholesalers, dealers, manufacturers-cum-retailers, and importer-cum-retailers engaged in commercial activities within Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar.
This initiative not only aims to bolster revenue generation but also serves as a litmus test for the government’s political resolve. While similar schemes have been proposed in the past, their implementation has faced delays and challenges. However, the current administration, under the auspices of the Special Investment Facilitation Council, is poised to spearhead the execution of this pivotal scheme.
As per the notification, while the scheme officially commences on April 1, traders will be required to remit their first tax payments by July, with a deadline of April 30 for registration. Failure to comply with the registration requirements within the stipulated timeframe will result in compulsory enrollment in the National Business Registry.
