FBR to launch crackdown on 1 million non-filers retailers

ISLAMABAD: The government has decided to launch a crackdown on around one million non-filers after the fixed tax scheme for retailers failed to attract the expected response.

Federal Board of Revenue (FBR) Chairman Rashid Langrial told a Senate committee briefing that strict action would be taken against retailers who fail to join the tax net.

Minister of State for Finance Bilal Azhar Kayani said the government would have to adopt a “carrot-and-stick” approach to bring more retailers into the tax system.

According to FBR officials, Pakistan has around 4.3 million retailers, of whom only six million are filers, while 3.7 million remain outside the tax net.

The FBR acknowledged that its one per cent fixed tax scheme for retailers had failed to receive the expected response.

Officials said action would be initiated against around one million non-filers who did not take advantage of what the FBR had described as a highly favourable tax scheme.