Staff Report
ISLAMABAD:
The government is poised to introduce a novel scheme aimed at enhancing tax collection efficiency by proposing to collect taxes from traders through their electricity bills.
Sources of the Federal Board of Revenue (FBR) informed that that the government is likely to formulate a scheme to broaden the tax base by incorporating approximately 3.5 lakh traders into the tax net. As per the proposed scheme, taxes will be collected from traders on a monthly basis through their electricity bills.
Under this scheme, the annual income of traders will be segmented into twelve parts, and taxes will be levied accordingly on a monthly basis. Notably, the tax collection responsibility will be placed upon the shopkeepers themselves rather than the actual shop owners. In line with this, a proposal is being drafted to introduce a dedicated column in electricity bills specifically designated for traders.
Sources also said that the proposed scheme is likely to be introduced before the upcoming budget for the new financial year. Additionally, it has been communicated to the International Monetary Fund (IMF) to apprise them of the government’s strategy to bolster tax collection efforts.
The proposed initiative aims to streamline tax collection procedures, enhance transparency, and broaden the tax base across the country. By integrating tax collection mechanisms with utility bills, the government anticipates improved compliance and revenue generation while ensuring a fair contribution from traders towards national development initiatives. However, the proposal is expected to undergo thorough scrutiny and consultation processes before its implementation to address any potential concerns or challenges that may arise.
