Govt Announces Huge Fines for Shop Owners

The government has announced substantial fines for shop owners who fail to comply with Pakistan’s Easy Tax Scheme or submit tax returns via the standard method, according to a briefing provided at a review meeting chaired by Bilal Azhar Kayani, the Minister of State for Finance and Railways. The Federal Board of Revenue (FBR) and associated authorities have been instructed to assist shopkeepers in filing their returns and obtaining FBR plates without undue delay.

Penalties escalate to Rs. 10,000 in the first month after the filing deadline, Rs. 25,000 in the second month, and a substantial Rs. 50,000 in the third month, should tax returns remain unfiled.

Shopkeepers are offered two avenues to meet their tax obligations: registration under the Easy Tax Scheme, where tax is levied based on turnover, or submission of tax returns through the traditional system. Should neither option be utilized, shopkeepers risk incurring penalties. Within the first month of the Easy Tax Scheme's launch, 9,806 shopkeepers had registered, including 1,929 new taxpayers who had not previously participated in the tax system.

To date, 428 registered shopkeepers have filed their returns, with the remainder progressing through the various stages of the filing process.

A booklet in Urdu detailing the Easy Tax Scheme, the existing tax-filing procedure, and the penalties applicable post the deadline has been released. The review meeting also highlighted that participation in the scheme spans both large and small cities, indicating widespread engagement among shopkeepers.