FBR Assures No Tax on Bank Deposits of Rs. 200,000; Small Traders Exempt from Digital Invoicing
In a recent meeting with the All Pakistan Traders Organization, the Federal Board of Revenue (FBR) assured that no tax will be deducted on bank deposits of Rs. 200,000, offering much-needed relief to small traders and retailers.
Key Clarifications from FBR
During discussions held under the Revenue Division, FBR officials clarified several points of concern raised by the business community:
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Digital invoicing will not apply to small retailers or traders.
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The system will be rolled out in phases and is limited to business-to-business (B2B) transactions involving sales tax-registered companies.
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Trader representatives will be included in the committee overseeing the digitalization process to ensure transparency and collaboration.
Sales Tax Laws 37A & 37B Not Applicable to Small Traders
The FBR also addressed concerns surrounding Sections 37A and 37B of the new sales tax laws, assuring the public that:
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These provisions are not targeted at small traders.
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Their purpose is to prevent fake invoicing and enhance tax transparency.
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No large industrialists will be arrested under these clauses.
Dialogue on Customs and Mobile Tax Reforms
It was mutually agreed that a separate meeting will be arranged to establish a new framework for customs raids in local markets. Additionally, the FBR confirmed that traders will be consulted on any upcoming tax policy changes related to mobile phones.
Business Community Voices Strong Concerns
Prominent business leaders including Kashif Chaudhry, Khawaja Salman Siddiqui, and Sharjeel Mir took part in the meeting. They strongly conveyed that the business community rejects any harsh tax measures and is committed to engaging in constructive dialogue to develop fair, growth-friendly policies.
