The Federal Board of Revenue (FBR) has assured the All Pakistan Anjuman-e-Tajiran (Traders Association) that no tax will be deducted on cash deposits of up to Rs. 200,000 into bank accounts. This assurance was given during a detailed meeting between FBR officials and representatives of the traders’ community to address their tax-related concerns.
Key Clarifications by FBR
The FBR explained that small traders and retailers will not be required to adopt digital invoicing for now. Instead, digital invoicing will be introduced gradually for business-to-business (B2B) transactions and will apply only to companies already registered for sales tax.
Officials further clarified that Sections 37A and 37B of the Sales Tax Act—which target fake invoices and tax fraud—will not apply to small shopkeepers and traders. Even for larger industrialists, these sections will only be enforced in cases of proven serious fraud, and no arrests will be made without substantial evidence.
Traders to Be Part of Digitalization Plans
To build trust, the FBR announced that representatives of traders will be included in the digitalization committee. This is to ensure that small businesses are not unfairly burdened by sudden changes in tax or digital compliance requirements.
New Approach to Customs Raids
Traders also voiced concerns over customs raids in local markets. The FBR responded by agreeing to hold a separate meeting to design a more transparent and fair mechanism to address such issues, aiming to prevent misuse of authority and ensure smooth business operations.
Review of Mobile Phone Tax
The FBR also assured the traders that mobile phone taxation policies will be reviewed with their full input. Any reforms in this area will be implemented only after proper consultation with all relevant stakeholders.
