Deadlock persists between FBR and retailers over tax-friendly scheme

ISLAMABAD, Sep 03: Negotiations between the Federal Board of Revenue (FBR) and retailers have reached a deadlock over a proposed tax-friendly scheme, with both sides failing to reach a breakthrough during recent discussions.
The FBR has proposed forming a committee comprising representatives from the business community to reassess the fair market value rate of PKR 60,000 per month for the country’s 84 markets. The FBR suggested that if a retailer can prove their income is below this threshold, the rate could be adjusted accordingly.
However, retailers have outright rejected the tax-friendly scheme in Monday's talks, expressing their determination to propose an alternative plan that would strengthen the tax collection process across the country’s retail sector.
An FBR representative commented, “We asked the retailers to present a proposal that could generate up to PKR 100 billion in taxes, but they dismissed it. It is not feasible for them to continue evading the income tax net.”
The stalemate continues as both parties seek a resolution that balances tax collection needs with the concerns of the retail community.