Key points
- Digital invoicing will not be enforced on small traders and retailers
- Focus will be on larger registered businesses
- Traders to join digitisation process
- Customs raids and reforms under review
ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) has clarified that no tax will be levied on bank deposits amounting to Rs200,000 or less, countering misinformation that has been spreading on social media platforms.
The clarification was provided during a meeting between FBR representatives and the All Pakistan Traders Association, according to Pakistan Observer.
The officials clarified that the circulating claims of such deductions were baseless.
Digital invoicing
Additionally, the FBR stated that digital invoicing requirements will not extend to small-scale traders and retailers. Instead, the invoicing system will be introduced gradually and limited to business-to-business transactions involving companies registered under the sales tax regime.
To foster transparency and improve cooperation, the FBR also agreed to include trader representatives on the digitalisation committee.
Further assurances were made regarding the Sales Tax Act, with the FBR confirming that Sections 37A and 37B will not be enforced against small traders. It was emphasised that these clauses are aimed solely at curbing the use of fraudulent invoices, and not intended for the arrest of major industrialists.
Traders’ concerns
The meeting also led to an agreement to convene a separate session aimed at developing a new strategy to address traders’ concerns over customs raids in marketplaces.
On another front, the FBR committed to engaging trader bodies before implementing any changes related to mobile phone taxation.
