The Federal Board of Revenue (FBR) will enter markets to identify and register unregistered retailers as the government pushes to expand the tax net.
FBR officials told the Senate Standing Committee on Finance that Pakistan has around 4.3 million retailers, but only about 600,000 are currently filers. The tax authority aims to bring another 500,000 to 700,000 retailers into the tax net, with enforcement to be used where voluntary registration falls short.
The committee, chaired by Senator Saleem Mandviwala, reviewed the government’s one-percent fixed tax scheme for retailers along with other financial matters.
Minister of State for Finance Bilal Azhar Kayani said the government introduced the retailer tax scheme after years of consultations with traders. He said retailers have no option other than registration and warned that unregistered shopkeepers would face enforcement action and penalties.
According to Kayani, 10,338 shops have registered so far, including 2,337 new retailers. However, only 787 of the registered retailers are filers.
FBR Chairman Rashid Langrial said the tax authority had made extensive efforts to promote the scheme, particularly through social media, but acknowledged that registrations remained below expectations.
He said enforcement would be necessary in some cases and warned that failing to act against non-compliant retailers could undermine future tax schemes.
FBR Member Hameed Atiq Sarwar said around 200,000 retailers are expected to join the tax net voluntarily, while the remaining target of 500,000 to 700,000 additional retailers would be pursued through enforcement.
Senator Farooq H. Naek called for a month-long awareness campaign, saying consultation with traders’ representatives alone was not sufficient to ensure compliance.
Tax Returns
Sarwar also told the committee that around 5.5 million tax returns had been filed so far this year, compared with approximately 4 million during the same period last year.
FBR officials said the number of returns could reach 6.5 million by the end of the day.
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