ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) is facing challenges in implementing its tax scheme for retailers, with only 1,571 income tax returns submitted under the initiative so far. The low filing figure has raised concerns about the scheme’s effectiveness in bringing more retailers into the country’s tax system.
The latest figures indicate limited participation despite the government’s efforts to improve tax compliance among retailers. The initiative was introduced to encourage traders to fulfil their tax obligations and broaden the country’s revenue base.
Meanwhile, the FBR has extended the deadline for filing income tax returns from October 15 to October 31, 2026. The extension provides taxpayers with additional time to complete their returns and meet their legal obligations.
According to the available figures, the revenue authority has received approximately 6.9 million income tax returns so far. These filings have generated around Rs72 billion in tax payments, reflecting the scale of tax compliance recorded during the current filing period.
A comparison with the corresponding period of the previous fiscal year shows that approximately 5.2 million returns had been filed at that time. Although the current number of returns is higher, the amount of tax paid during the earlier period was reportedly greater.
The figures highlight the difference between the number of tax returns submitted and the revenue collected. While a rise in filings can indicate broader participation in the tax system, the amount collected remains an important measure of overall tax performance.
With the October 31 deadline approaching, the FBR faces the challenge of encouraging more retailers to participate in the scheme and improving compliance. The final filing figures will help determine whether the extension leads to greater participation and stronger tax collection.
