FBR seeks proposals to revise advance income tax table for non-filer traders

LAHORE: The Federal Board of Revenue (FBR) has sought proposals from traders to revise the advance income tax table as traders from almost 15 per cent of areas in 42 cities raised objections to the proposed table.

In a meeting presided over by Chief Coordinator of the Tajir Dost Scheme Naeem Mir on Friday, which was attended by 17 regional tax offices (RTOs) through a video link, FBR officials listened to the concerns of traders on the proposed advance income tax.

The traders shared that they are willing to pay up to Rs5000 per month in advance income tax and protested against the amount between Rs10,000 and Rs60,000 per month.

According to the proposed advance income tax table on non-filers, the FBR has classified 42 cities into 2-9 categories, where it applies the advance income tax of Rs100 to 60,000 per month in different slabs.

The slabs are devised based on location in different cities. The traders from mega cities raised objections, adding that small shopkeepers in posh localities are falling in the highest tax slabs of Rs60,000 per month while their shop rent is even less than the monthly advance income tax.

For instance, a vegetable or chicken meat seller in DHA is a non-filer but falls under the highest slab of Rs60,000 advance income tax per month. This raises concern among traders, which constitute 15 per cent of the total slabs.

After listening to the traders’ concerns, the FBR officials sought proposals from them, asking their representatives to submit their proposals/objections in a day to their concern RTOs so that the issue could be discussed with the chairperson of the FBR. They added that the revised proposed advance income tax table would be shared and issued in consultation with stakeholders.

Naeem Mir, while talking to The News, said that Friday’s meeting, which lasted over five hours, was fruitful as a majority of the traders’ concerns were addressed and 85 per cent of the traders agreed to pay the currently proposed advance income tax.”

Mir added that only 15 per cent had some genuine concerns, which were raised in the meeting. “The FBR is ready to address these concerns and has sought proposals/objections from the traders.”

“The FBR will issue the final advance income tax table for 42 cities in Pakistan once all the concerns and objections are addressed. Earlier, advance income tax tables were issued for only six megacities,” he added.

Mir said that, on the instructions of the prime minister, consultations with traders are underway to bring them into the tax net. He said that the adjustable advance income tax will be collected from retailers in all the cities included in the Tajir Dost Scheme.

The FBR has segregated the table in accordance with the localities of different cities -- backward, middle and affluent -- for the fair implementation of the tax.