Key Takeaways
- Only 91 new retailers have joined the tax scheme, far below the FBR's target.
- Total tax payments under the scheme have reached Rs. 86 million so far.
- The FBR aims to generate Rs. 50 billion from the scheme in the current fiscal year.
The Federal Board of Revenue (FBR) has reported that only 91 new retailers have joined its new fixed tax scheme, significantly falling short of the government's Rs. 50 billion revenue target for the current fiscal year.
During discussions with the International Monetary Fund (IMF) as part of the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF), the FBR shared these figures, which have raised concerns about the scheme's effectiveness.
The scheme, which was designed to encourage retailers to file tax returns, has so far collected only Rs. 86 million in tax payments, far below the expected Rs. 50 billion.
The FBR has extended the income tax return filing deadline from September 30 to October 15, offering retailers an additional week to comply. However, officials report that participation in the scheme remains weak.
Under the tax laws, retailers who fail to join the scheme after the deadline face penalties of Rs. 10,000 in the first month, Rs. 25,000 in the second month, and Rs. 50,000 in the third month.
This is not the first such scheme to face challenges in the past three decades, adding to concerns over the government's ability to effectively bring retailers into the tax system.
The FBR has extended the income tax return filing deadline from September 30 to October 15, giving retailers an additional week to comply. However, officials report that participation in the scheme remains weak.
The latest figures add to concerns over repeated efforts to bring retailers into the tax system, highlighting the ongoing struggle for the FBR to meet its revenue targets.
