FBR rolls out mandatory registration scheme for businesses

WEB DESK: The Federal Board of Revenue (FBR) has introduced a compulsory tax registration programme for both retailers and wholesalers, slated to come into effect from April 1, 2024. This initiative targets businesses in six major cities nationwide.

Under a statutory regulatory order (SRO) issued by the FBR, the registration requirement for retailers is in line with conditions outlined by the International Monetary Fund (IMF) as part of the approval process for a $1.1 billion loan tranche.

Retailers and wholesalers operating in Karachi, Lahore, Rawalpindi, Islamabad, Quetta, and Peshawar are mandated to register under this new scheme, which extends its scope to other participants in the supply chain.

The scheme necessitates both registration and upfront payment of income tax, with the first installment due by July 15. Failure to comply by April 30 will result in automatic registration by the FBR.

To streamline tax payments and registration, a centralised database will be established, with a minimum annual income tax obligation of Rs1,200 applicable to all traders.

Additionally, the FBR is offering a 25 per cent tax rebate to traders who settle their taxes in advance or submit returns for the year 2023.

Tax obligations will be calculated based on the annual rental value of business premises, assessed at 10 per cent of the market value, with detailed valuation guidelines provided by the FBR.

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