FBR and Traders Work Towards Streamlined Tax Payment Agreement
Revised Approach to Benefit Both Tax Authorities and Traders
FBR and Traders Work Towards Streamlined Tax Payment Agreement.The Federal Board of Revenue (FBR) is currently reviewing a proposal from the business community aimed at reforming the current tax collection system. The proposed change would shift from the existing quarterly tax payments to an annual tax payment system. Traders have suggested implementing an advance tax collection mechanism based on specific categories of businesses, which they believe would simplify the process compared to the current method of conducting door-to-door surveys in markets.
Under the proposed system, the FBR would categorize businesses into major groups, each with a predefined advance tax amount. This approach is expected to streamline tax collection and reduce administrative burdens for both the tax authorities and the traders. The FBR is now focused on identifying these business categories and determining the appropriate advance tax amounts for each one.
Naeem Mir, a key representative of the traders, has indicated that the primary issue now is to finalize a tax collection mechanism that will be agreeable to both the FBR and the traders. He emphasized that once this mechanism is established, the FBR will also determine the quarterly tax amounts that traders will need to pay under the new system.
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The proposed system aims to address traders’ concerns and make tax payments more manageable while improving efficiency in tax collection. The FBR is in the process of assessing the feasibility of this proposal and its potential impact on the tax administration system.
The Federal Board of Revenue (FBR) has consented to lower the highest fixed tax brackets, reducing the maximum amount from Rs 60,000 to a more manageable level. Ongoing discussions between the FBR and traders are focused on resolving outstanding issues and reaching a consensus on tax payment terms.
This revised proposal is designed to streamline the tax collection process, making it more straightforward and user-friendly for both the FBR and the traders. It aims to address the traders’ concerns about the current system, which they find to be complex and burdensome.
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