Only 91 New Retailers Join Tax Scheme, FBR’s Rs. 50 Billion Target in Jeopardy

Meanwhile, 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 reservations concerning the government's.

Key points

• 144 Billion Tax in Q1, Far More Than Retailers and Real Estate Combined.
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• The FBR has extended the income tax return filing deadline from September 30 to October 15.
• 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).
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For context, the scheme intends to generate Rs. 50 billion in the current fiscal year. Nevertheless, total tax payments collected under it have reached only Rs. 86 million so far.

Meanwhile, 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 regarding progress under the Retailers Fixed Scheme.

Salaried Class Pays Rs. 144 Billion Tax in Q1, Far More Than Retailers and Real Estate Combined.

Meanwhile, the FBR has extended the income tax return filing deadline from September 30 to October 15. Retailers can additionally benefit from the extension, but office-holders say participation in the scheme has remained subdued.

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.

Notably, the latest figures add to reservations over repeated efforts to bring retailers into the tax system. According to the report, this is not the first such scheme to face the prospect of failure previously three decades. Stay Connected with ProPakistani.

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For now, only 91 New Retailers Join Tax Scheme, FBR's Rs. 50 Billion Target remains the part of the story worth watching, and further updates are likely as more details are confirmed.