Online Business FBR Licensing Procedure in Pakistan

The Federal Board of Revenue (FBR) has issued a licensing procedure for online businesses (vendors/integrated enterprises). An SRO (Statutory Regulatory Order) 1845(l) 2023 has been issued by the FBR to amend the Income Tax Rules, 2002.

Compulsory registration scheme for retailers and wholesalers doing business in 6 major cities of Pakistan. The scope of the scheme has been extended to retailers, wholesalers, dealers, manufacturers-cum-retailers, importers-cum-retailers or persons associated with any such activity.

The scheme has been implemented in Karachi, Lahore, Islamabad, Rawalpindi, Quetta and It will be done in Peshawar. The Licensing Committee will examine the applications and make recommendations to Member Digital Initiatives for renewal of licences.

Online Business FBR Licensing Procedure in Pakistan

The Convener of the Licensing Committee shall be responsible for the overall monitoring of the system and the steps taken to resolve the problems arising during the operation of the system. , will determine model and specification approval, which means that systems consisting of a Cell Data Controller (SDC) and at least one Point of Sale (POS) will be linked together. FBR has prepared to introduce retailers scheme for traders Pakistan.

FBR has developed ‘Tajjar Dost‘ mobile app for registration of traders, traders outside the tax net will be registered through “Doost“, income records of shopkeepers through “Doost App” to FBR. The tax will be levied on the shopkeepers according to their annual income, collected monthly. 100 billion rupees tax is expected from retailers in Islamabad, Karachi, Lahore, Peshawar and Quetta.

In the second phase, the registration of traders from other cities will be started. The tax on retailers across the country is expected to generate more than 300 billion. Under the scheme, taxes will be levied on businesses and individuals associated with all sectors.

Online Business FBR Licensing Procedure in Pakistan

The scheme will be implemented from April 1, but the traders will pay the first tax in July. The scheme has been launched to register traders and collect minimum advance income tax. , which will be by April 30, traders who do not register themselves by the given time, will then be compulsorily registered in the National Business Registry.

Every trader is obliged to pay monthly advance income tax by 15th of every month, if the income of the trader is less than the income tax level then he has to pay 1,200 rupees as income tax annually. 25% discount in income tax will be given to the traders, all the activities will be carried out under a separate computerized system, the tax will be determined on the basis of the annual rent of the commercial premises.


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Fahad Munir

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