FBR to Collect Advance Tax From Traders on Quarterly Basis

The Federal Board of Revenue (FBR) has categorically conveyed to the traders that the first payment of advance tax quarterly will be paid in October 2024, sources told ProPakistani. This would require an amendment in the notification to change the tax payment system from a monthly to a quarterly basis. Sources informed that during the ongoing meetings between the FBR and the traders, the Board is considering a new proposal for traders to collect advance tax based on the category of businesses in the market. The traders wanted to pay tax on an annual basis. However, the traders have to pay advance tax on a quarterly basis and the first installment of July-September (2024-25) will be paid in October 2024. The category-wise collection of tax would be easy as compared to a door-to-door survey of the markets which is a time-consuming process. Therefore, one of the proposals is to collect tax based on businesses in the market, they added. In this regard, the FBR will determine major categories of businesses. The category-wise advance tax could be fixed for all kinds of businesses. The category of business-wise shops would be determined. On the other hand, the monthly fixed tax payment mechanism may be replaced with the quarterly tax payment with necessary amendments in the FBR’s notification.