FBR to slap 10pc withholding tax on unregistered retailers

After an unsuccessful voluntary registration push for the Tajir Dost Scheme (TDS), the Federal Board of Revenue (FBR) has proposed increasing withholding tax on supplies to non-filer wholesalers and traders, official sources told Dawn on Wednesday. The FBR announced a sweeping registration drive under the TDS, offering incentives to traders and wholesalers to register voluntarily into the formal tax framework by the April 30 deadline. In the first month of voluntary registration under TDS, FBR reported less than 100 traders despite a major drive to lure traders. Official sources told Dawn that FBR has already worked on a proposal to increase withholding tax rates on supplies to non-registered traders and wholesalers under the TDS. The new tax rates will be announced in the budget 2024-25 and will come into effect on July 1.