The Federal Board of Revenue (FBR) has devised a new plan for collecting additional Rs. 400 billion in revenue by bringing 3.5 million traders into the tax net through electricity bills, sources told ProPakistani.
Sources said the retail and wholesale sector make up 18 percent of the country’s economy but contribute less than 5 percent in taxes. The latest FBR initiative aims to register 3.5 million businessmen and traders, with an initial focus on major cities like Islamabad, Lahore, Peshawar, Quetta, and Karachi.
Under the proposed scheme, the tax regulator will collect taxes from traders by adding a dedicated column to their electricity bills. Sources the annual income of traders will be divided into 12 installments and tax will be levied through electricity bills on a monthly basis.
Sources added that authorities plan on presenting this proposal in the upcoming fiscal year budget. The International Monetary Fund has been briefed on the plan, which is expected to generate substantial revenue.
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