Fixed tax draws only 2 new traders

According to The Express Tribune, only two new traders have so far joined the 1% fixed tax scheme, while 315 shopkeepers who were already income tax filers make up most of the 317 participants. With only a week left before the return filing deadline, roughly Rs26 million has been generated so far, averaging Rs81,944 per trader, against an annual target of Rs50 billion from traders. Minister of State for Finance Bilal Azhar Kayani reviewed the scheme's progress on Tuesday.

Under the scheme, single-outlet retailers whose sales stayed below Rs200 million a year across three straight years pay 1% of total goods sold in return for relief from tax audits and digital payment requirements. The finance ministry said the meeting agreed to step up awareness drives, and tax commissioners were told to work with local tax bars so shopkeepers can have forms completed by lawyers of their choice. Those who neither opt for the fixed tax nor file regular returns face a Rs10,000 fine in month one, Rs25,000 in month two and Rs50,000 in month three.

FBR data showed that salaried-class income tax collection reached Rs91 billion in July and August, Rs6.3 billion or 7.5% higher than a year earlier. Real estate sector collections, however, fell 28% to Rs28 billion this fiscal year, leaving the sector Rs11.2 billion behind last year even though property transactions were expected to rise.