Govt Begins Nationwide Mapping of Markets, Shops for Retailers’ Tax Scheme

The government plans to commence a nationwide mapping initiative of markets and individual shops to introduce the retailers' fixed tax scheme, with shopkeepers facing penalties for not submitting their returns by the October 15, 2026 deadline. Bilal Azhar Kayani, Minister of State for Finance and Railways, clarified that penalties will commence at Rs.

10,000 in the month following the deadline, escalating to Rs. 25,000 and Rs. 50,000 in the following months. The government has extended the filing deadline by 15 days to October 15. Approximately 3.7 million retailers currently fall outside the tax system, while over 10,000 have registered using the scheme's application. To date, only 778 retailers have filed returns, including just four new businesses under the scheme.

Kayani instructed FBR officials to develop daily schedules and conduct visits to markets in collaboration with trader representatives. Every shop will be mapped, and traders will be informed about the tax scheme and the return filing process. It was also noted that a technical problem with the "other income" column in the tax return had been resolved after receiving complaints from traders.

Kayani emphasized that the scheme was developed in consultation with traders and urged shopkeepers to utilize the extended deadline to file their returns before penalties are enforced.