In line with the demands put forward by the International Monetary Fund (IMF), the Federal Board of Revenue (FBR) has devised a comprehensive plan aimed at increasing tax revenue and documenting the economy.
This initiative targets the inclusion of approximately 3.5 million traders within the tax net through monthly electricity bills as a means of tax collection from them.
Under the proposed scheme, taxes will not be levied directly on shop owners but on the individuals conducting business at these premises, based on their taxable income.
FBR sources have said that the plan proposes introducing a new column in the electricity bills specifically for traders, facilitating the collection of taxes on a monthly basis.
The scheme proposes to divide the annual income of traders into 12 installments, thereby streamlining the tax collection process. Moreover, FBR officials have suggested that this initiative could be implemented before the announcement of the new fiscal year budget.
However, the execution of the plan is contingent upon receiving approval from the new coalition government. FBR sources have said they are awaiting a green signal from the government to proceed with the implementation of the scheme.
It has also been reported that the IMF has been briefed about the proposed plan, with expectations that its execution will significantly enhance revenue generation and contribute to the formalization of the economy.
Overall, the introduction of this scheme represents a concerted effort by the FBR to address IMF demands, increase tax revenue, and promote economic documentation in Pakistan.
