Only Two New Traders Join FBR’s Aasaan Tax Scheme

Only two newly registered traders have so far opted for the Federal Board of Revenue’s (FBR) Aasaan Tax Scheme, while 315 of the 317 shopkeepers who have submitted returns under the scheme were already registered within the income tax system.

The figures indicate limited participation from previously unregistered retailers, with only one week left before the return-filing deadline.

The scheme has generated around Rs26 million in tax revenue so far, averaging approximately Rs81,944 per trader, against the government’s annual collection target of Rs50 billion.

The two new shopkeepers who joined the scheme are from Quetta and Rawalpindi. Another 44 newly registered retailers had prepared draft returns but had not submitted them as of Tuesday.

Around 5,000 retailers have registered for the simplified tax-filing facility, but only a small portion have completed and submitted their returns.

Minister of State for Finance and Railways Bilal Azhar Kayani reviewed progress on the scheme on Tuesday as the government intensified efforts to encourage more shopkeepers to participate before the deadline.

Under the Aasaan Tax Scheme, small retailers can pay a fixed tax equal to 1% of their sales. Businesses opting for the facility are exempt from tax audits and requirements related to digital transaction systems.

The government has instructed FBR commissioners across the country to step up awareness campaigns and coordinate with trader representatives and local tax bars to assist shopkeepers.

Tax commissioners have also been directed to establish links with local tax bars so that traders can obtain assistance from tax lawyers of their choice while completing the registration process.

Kayani said information about the scheme should reach every shopkeeper with the support of trader representatives. He said the government had introduced the facility in response to traders’ demands and that shopkeepers now had a role in making the initiative successful.

The government is also involving trader representatives directly in implementation. Lists of local representatives have been collected from across the country to facilitate joint market visits by FBR officials and representatives of the trading community.

Shopkeepers have two choices for fulfilling their tax obligations. They can either pay the fixed 1% tax on sales under the simplified scheme or continue submitting regular income tax returns under the existing tax system.

Those who choose neither option may face penalties under the terms agreed with trader representatives. The penalty is Rs10,000 for the first month of non-compliance, Rs25,000 for the second month and Rs50,000 for the third month.

The Aasaan Tax Scheme is the government’s second initiative aimed at expanding the tax base among traders, following the earlier Tajir Dost scheme, which did not achieve the expected results.

Kayani has expressed optimism about the latest scheme because trader representatives were involved in its design and implementation.

The limited participation from previously unregistered traders contrasts with the broader increase in income tax filing. The FBR has received 3.5 million income tax returns so far this year, compared with 2.5 million during the same period of the previous financial year. Tax payments during the period have also reached around Rs10 billion.