Only 91 New Retailers Join Tax Scheme, FBR’s Rs. 50 Billion Target in Jeopardy
The Federal Board of Revenue (FBR) has informed the International Monetary Fund (IMF) that only 1,016 retailers have filed tax returns under its new fixed tax scheme, with just 91 of them being new filers, raising concerns about the government’s ability to meet its revenue target.
The scheme aims to generate Rs. 50 billion in the current fiscal year. However, total tax payments collected under it have reached only Rs. 86 million so far.
The figures were shared during discussions with the IMF mission as part of the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF). The IMF asked the FBR about progress under the Retailers Fixed Scheme.
The FBR has extended the income tax return filing deadline from September 30 to October 15. Retailers can also benefit from the extension, but officials say participation in the scheme has remained 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.
The latest figures add to concerns over repeated efforts to bring retailers into the tax system. The report noted that this is not the first such scheme to face the prospect of failure in the past three decades.
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