FBR warns traders of penalties: Only four returns filed under easy tax scheme

Business Recorder reported that just four newly registered retailers have submitted returns under the one percent fixed tax scheme so far. FBR Chairman Rashid Langrial told the Senate Standing Committee on Finance and Revenue on Wednesday that take-up is well below what the board expected. He also warned traders who neglect registration and filing that enforcement measures will follow.

Registrations reached 10338 retailers, including 2337 newcomers, under a scheme aimed at shops turning over no more than Rs20 million a year. Langrial linked the low compliance to a belief that non-filers would escape action, while the committee was told that registration is mandatory and traders must declare income and file returns. Penalties would begin at Rs10,000, rise to Rs25,000 and then Rs50,000, and FBR plans to monitor filings for one month before tightening enforcement.

The committee called for a lasting awareness drive, asking for the scheme to be promoted over a minimum of one month using advertisements and flyers distributed in markets. Officials also told the committee that 5.5 million returns have reached FBR so far, compared with 4 million over the same period last year.