Islamabad, Nov 6: FBR to Register Retailers and Shopkeepers for Taxes Using Electricity Bill Data
The FBR intends to expand the tax base by recognizing unregistered businesses with significant electricity consumption, focusing on around 350,000 traders in key cities like Karachi, Lahore, and Islamabad.
The FBR will classify businesses according to their energy usage by including a designated column on electricity bills, allowing for the estimation of taxable income with minimal auditing needed.
This approach enables the FBR to conduct direct tax evaluations on traders who might have previously evaded tax registration.
This initiative is a component of Pakistan’s wider economic reform strategies and aligns with suggestions from the International Monetary Fund (IMF) aimed at boosting revenue.
By formalizing the retail industry, which makes up roughly 18% of Pakistan’s GDP yet contributes under 5% to tax revenues, the FBR aims to generate an extra Rs 400 billion each year.
The FBR cautions that companies that do not meet the deadline may be subject to mandatory registration and potential penalties.
