Govt decides to map non-compliant shops

The Express Tribune reported that the government on Thursday decided to start mapping shops across the country immediately, with punitive action planned against traders who have not joined the fixed tax scheme. Under that scheme, participants pay 1 per cent tax and receive protection from audit along with permission to keep dealing in cash. The decision came at a review meeting held a day after figures showed only four new traders had joined before the statutory deadline.

According to a Ministry of Finance statement, FBR officers will work with trader representatives to chart all markets and each individual shop from Friday. Minister of State for Finance Bilal Azhar Kayani chaired the meeting and said shopkeepers had been given a plan they selected themselves, leaving no justification for skipping returns. Shopkeepers who miss the deadline will face fines of Rs10,000 in the first month, Rs25,000 in the second and Rs50,000 in the third.

The FBR received 5.7 million returns against 8.5 million in the last tax year, a 32 per cent drop, and only four of the 787 scheme returns came from new filers. The government has estimated at least Rs50 billion from the scheme and has added that amount to this fiscal year's budget. The government also acknowledged technical faults in the trader return form, and the one affecting the other income column has since been fixed.