Only 4 New Traders Join Fixed Tax Scheme; FBR Chief Says ‘Good Faith Defeated’

Only four new shopkeepers joined the fixed tax scheme before the deadline, according to Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial. Langrial admitted the response was lower than anticipated, stating traders had "defeated the good faith" of the government. The government offered a 15-day extension for filing tax returns after collecting 5.7 million returns by September 30, compared to the 19 million registered taxpayers.

The chairman noted that filers were 1.7 million more than in September 2022. The poor response coincided with the close of the first quarter, when the FBR met its target of Rs. 3.03 trillion, enhancing its position with the International Monetary Fund (IMF). The Senate Standing Committee on Finance, led by Senator Saleem Mandviwalla, received a briefing on the new fixed tax scheme.

Zubair Bilal, FBR Member Operations, said 787 returns had been filed under the scheme, with only four being new. Bilal attributed the issue to technical glitches in the application. Kayani, the scheme's architect, expressed hope the response would improve after the FBR started chasing traders. He emphasized strong enforcement measures if traders did not comply.

The government's 1% fixed tax scheme offers retailers a nominal tax in exchange for no audits and Point of Sales system installation.