The Federal Board of Revenue (FBR) has taken a major U-turn on its earlier stance by announcing that retailers will not be given any tax relief on cash deposits exceeding Rs 200,000 in bank accounts.
The condition will also apply to individuals and businesses engaged in online sales, according to official sources.
Under the revised policy, any payment above Rs 200,000 must now be conducted strictly through crossed cheques or online banking channels, rather than cash.
If retailers deposit cash exceeding this threshold, the FBR will impose a penalty by deducting 50 percent of the amount from their declared production costs, thereby increasing their tax liability.
The new measure is aimed at curbing tax evasion within the retail sector and accelerating the digitization of Pakistan’s economy.
By discouraging large cash transactions, the FBR intends to promote transparency in financial dealings, aligning the country’s financial practices with international standards of digital transactions.
