Government Plans Crackdown on 1 Million Non-Filers After Fixed Tax Scheme Fails to Gain Traction

ISLAMABAD:The government has decided to launch a crackdown against around one million non-filers following the lack of significant response to the fixed tax scheme for retailers.

Federal Board of Revenue (FBR) Chairman Rashid Langrial informed a Senate committee during a briefing that strict action would be taken if retailers failed 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 improve tax compliance.

FBR officials told the committee that out of approximately 4.3 million retailers in the country, only around 600,000 are filers, while 3.7 million remain outside the tax net.

The FBR acknowledged that its one percent fixed tax scheme for retailers had not received the expected response.

Officials said the scheme had been introduced as a highly favorable option for retailers, but those who failed to benefit from it would face action.

According to the FBR, a crackdown against around one million non-filers is now being planned as part of efforts to broaden the country’s tax base and bring more retailers into the formal tax system.