FBR confirms no tax on bank deposits up to Rs200,000

The Federal Board of Revenue (FBR) has assured the All Pakistan Traders Association that no tax will be deducted on bank deposits of up to Rs200,000.

This statement rejects the rumours that have been circulating on social media for the past few days. The assurance was given during a meeting between FBR officials and trader representatives.

FBR also clarified that digital invoicing will not apply to small traders and retailers. Instead, it will be introduced gradually and only for business-to-business transactions involving sales tax-registered companies. To ensure transparency, trader representatives will be included in the digitalization committee.

The FBR further stated that Sections 37A and 37B of the Sales Tax Act will not apply to small traders. These laws are meant to prevent the use of fake invoices, and no large industrialist will be arrested under these provisions.

It was also decided that a separate session will be held to create a new system for addressing concerns about customs raids in markets. Additionally, FBR promised to consult trader representatives before making any reforms related to mobile phone taxes.

During the discussions, trader leaders such as Kashif Chaudhry, Khawaja Salman Siddiqui, and Sharjeel Mir raised their concerns about the current tax policies and said they would not accept what they described as “oppressive taxation.”

The meeting ended on a positive note, with both sides agreeing to work together to resolve these issues.

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