FBR Threatens Rs. 150,000 Fine for Traders to Save Flopped Tax Scheme

Meanwhile, the Federal Board of Revenue (FBR) intends to impose penalties of up to Rs.

Key points

• According to the FBR, Pakistan has around 4.3 million traders, of whom 600, 000 are already part of the tax system.
• By Wednesday, 2, 593 new retailers had registered under the scheme, but only 100 had filed returns and paid a combined Rs.
• Although administration sources described the target as ambitious, the FBR is additionally planning to map 30, 000 traders for the first round of notices.
• Only 91 New Retailers Join Tax Scheme, FBR's Rs.
• The Federal Board of Revenue (FBR) intends to impose penalties of up to Rs.

Meanwhile, the Federal Board of Revenue (FBR) intends to impose penalties of up to Rs. As only 100 new retailers have filed returns under the government's fixed tax scheme, 150, 000 on non-compliant traders who fail to file income tax returns after the extended deadline.

Notably, the FBR intends to employ existing provisions of the Income Tax Ordinance to problem notices to traders who did not join the scheme. Tax authorities stated the agency could send notices to 10, 000 to 15, 000 traders under Section 114(4), requiring them to file returns within the specified period.

Under the law, failure to file an income tax return can attract a minimum penalty of Rs. While failure to submit a wealth statement can result in an extra penalty of Rs, 50, 000 in most cases. 100, 000. This could bring the combined penalty to Rs. 150, 000. FBR to Monitor 5 Major Industries With Cameras.

Although administration sources described the target as ambitious, the FBR is additionally planning to map 30, 000 traders for the first round of notices. Authorities have reportedly triggered concern that the new scheme lacks effective penalties to compel traders to enter the tax system.

For context, the fixed tax scheme offered traders a tax rate of 1 percent of income or a minimum payment of Rs. 25, 000, along with exemptions from audits and permission to continue cash transactions without installing digital machines.

By Wednesday, 2, 593 new retailers had registered under the scheme, but only 100 had filed returns and paid a combined Rs. 3.2 million for tax year 2026. Their average payment was Rs. 32, 000.

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

According to the FBR, Pakistan has around 4.3 million traders, of whom 600, 000 are already part of the tax system. The scheme was intended to bring the remaining 3.7 million traders into the tax net. The administration is considering whether to impose penalties gradually or proceed under existing tax laws.

Meanwhile, traders have confirmed a partial strike against the registration of police cases over the apply of plastic bags. Traders' leader Ajmal Baloch remarked he continued to backing the fixed tax scheme but accused the Islamabad Capital Territory administration of creating obstacles.

He additionally alleged that technical difficulties with the online tax filing application had hindered compliance, including difficulties adjusting withholding tax paid through electricity bills. He remarked the problem was corrected on Wednesday. Stay Connected with ProPakistani.

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For now, FBR Threatens Rs. 150, 000 Fine for Traders to Save Flopped Tax Scheme remains the part of the story worth watching, and further updates are likely as more details are confirmed.