Islamabad: The Federal Board of Revenue (FBR) is preparing to take action against around one million non-filers after its fixed tax scheme for retailers failed to receive the expected response.
FBR Chairman Rashid Mahmood Langrial informed a Senate committee that stronger action could be taken if retailers continue to stay outside the tax system.
Millions of Retailers Still Outside Tax Net
According to figures shared by FBR officials, Pakistan has around 4.3 million retailers, but only about 600,000 are tax filers. This means nearly 3.7 million retailers remain outside the tax net.
FBR officials also acknowledged that the 1% fixed tax scheme introduced for retailers did not attract enough participation. The scheme was designed to make it easier for businesses to become part of the formal tax system.
Action Against 1 Million Non-Filers
Following the weak response, FBR plans to begin a crackdown against one million non-filers who did not benefit from the fixed tax facility.
Minister of State for Finance Bilal Azhar Kiani told the committee that the government would need to use both incentives and enforcement to improve tax compliance.
The latest move shows that authorities are increasing efforts to bring more retailers into Pakistan’s tax system. Retailers and business owners should keep track of official FBR notices for further instructions and compliance requirements.
