ISLAMABAD: Federal Board of Revenue (FBR) may impose penalties and premises closures after a flagship scheme to bring retailers into the tax net attracted dismal response, new figures show.
Just 1,750 retailers signed up for the Federal Board of Revenue's fixed retailers scheme before the October 31 filing deadline, and only 220 of them had never filed taxes before, according to FBR officials. The board estimates 3.6 million retailers are potential non-filers.
"Only 1,750 have availed the fixed retailers scheme but only 220 are fresh filers," local media reported.
The weak uptake comes as the FBR reported collecting Rs4,088.2 billion in the July-October period against a target of Rs4,217.2 billion, a shortfall of roughly Rs129 billion. Revenue grew 7% in the four months, far below the 17% pace needed to hit Rs15,264 billion by June 30, 2027.
The government had hoped the scheme would draw 0.2 million to 0.5 million retailers and generate Rs50 billion. Instead, officials are left weighing enforcement measures.
Under FBR rules, non-filers face fines of Rs10,000 in the first month, Rs25,000 in the second and Rs50,000 in the third. The board can then seal the premises of retailers who still refuse to register.
The FBR has also said it will geo-tag markets in upscale neighborhoods of major cities to identify retailers who should be filing returns.
Income tax returns totaled 7.6 million by the deadline. The FBR extended filing twice, from September 30 to October 15, then to October 31, and said no further extensions would be granted.
October collections rose to Rs1,002 billion from Rs975 billion a day earlier, the board said.
