ISLAMABAD – Federal Board of Revenue (FBR) cleared air that no tax will be deducted on bank deposits up to Rs 200,000, responding to growing concerns among traders regarding tax collection procedures.
This assurance was given during meeting between FBR officials and delegation from All Pakistan Anjuman-e-Tajiran, held in capital Islamabad. The meeting focused on tax reforms, digital invoicing, and customs enforcement.
According to FBR, digital invoicing will not be imposed on small traders and retailers, and will only apply gradually to business-to-business (B2B) transactions involving sales tax-registered companies.
FBR also committed to including traders’ representatives in its Digitalization Committee, ensuring transparency and mutual understanding during the implementation of future reforms.
Addressing concerns regarding Sales Tax Laws 37A and 37B, FBR clarified that these provisions will not apply to small traders. Even large-scale industrialists will not face arrest under these sections, which are specifically designed to curb the use of fake invoices, not target legitimate businesses.
In response to widespread criticism of customs raids in marketplaces, FBR announced that separate session will be held to develop a new enforcement mechanism, a move welcomed by trader representatives. Officials also confirmed that consultation with the business community will be carried out on tax reforms related to mobile phones.
The country’s apex tax collection agency voiced concerns during meeting, firmly stating that the business community will not accept oppressive or unjust taxation.
