Retailers Tax Scheme Flops as Only 220 New Shopkeepers Join

Only 220 new shopkeepers have joined the tax net under the government's simplified registration scheme for retailers, despite the Federal Board of Revenue (FBR) identifying 3.6 million potential non-filers in the retail sector.

Key points

• As sources indicate, just 1, 750 shopkeepers have availed the scheme so far.
• The slow uptake follows earlier figures showing only 91 new retailers had joined the scheme in early October.
• For the first four months of the current fiscal year (July to October), the FBR collected Rs.
• Authorities additionally have the power to seal the shops of retailers who stay outside the tax net.
• The subdued response comes as the FBR struggles to meet its revenue targets.

As sources indicate, just 1, 750 shopkeepers have availed the scheme so far. The scheme was introduced to widen the tax base and support the administration collect Rs. 50 billion from the retail sector. Fines and Shop Sealing for Non-Filers.

To bring more retailers into the net, the FBR intends to geo-tag markets nationwide, building on its nationwide mapping of markets and shops.

Shopkeepers who fail to register face escalating penalties. Non-filers could be fined Rs. 10, 000 in the first month, Rs. 25, 000 in the second month, and Rs. 50, 000 in the third month. Authorities additionally have the power to seal the shops of retailers who stay outside the tax net.

In practice, the slow uptake follows earlier figures showing only 91 new retailers had joined the scheme in early October. Revenue Shortfall Adds Pressure.

Notably, the subdued response comes as the FBR struggles to meet its revenue targets. The tax authority collected Rs. 975 billion in the first 30 days of October against a monthly target of Rs. 1, 132 billion, a shortfall of Rs. 157 billion.

For the first four months of the current fiscal year (July to October), the FBR collected Rs. 4, 058.5 billion against a target of Rs. 4, 185 billion, leaving a gap of Rs. 126.5 billion.

Meanwhile, the deadline for filing income tax returns was extended twice this year. By October, the FBR had received 7.6 million income tax returns. Stay Connected with ProPakistani.

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In short, retailers Tax Scheme Flops as Only 220 New Shopkeepers Join is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.