Islamabad: The government has decided to launch a crackdown on around 1 million non-filers after the fixed tax scheme introduced for retailers failed to receive the expected response. The Federal Board of Revenue (FBR) is preparing action against individuals who have remained outside the country’s tax system.
FBR Chairman Rashid Langrial told a Senate committee that strict action would be taken if retailers failed to join the tax net. He briefed the committee on the government’s efforts to increase tax compliance and expand the number of registered taxpayers.
According to FBR officials, Pakistan has around 4.3 million retailers, but only about 600,000 are currently filers. This means approximately 3.7 million retailers remain outside the formal tax net, presenting a major challenge for the government’s tax collection efforts.
The FBR acknowledged that its one percent fixed tax scheme for retailers had not received the level of participation expected by the authorities. The scheme had been presented as a relatively favorable option for retailers to become part of the formal tax system.
Despite the incentives offered under the fixed tax arrangement, a large number of retailers did not take advantage of the scheme. The FBR has now decided to begin action against non-filers who failed to register or comply with the tax requirements.
Speaking during the meeting, Minister of State for Finance Bilal Azhar Kayani said the government would have to adopt a “carrot and stick” approach to improve tax compliance. The policy would involve providing incentives and facilitation while taking action against those who refuse to comply with tax laws.
