Nearly 2,000 Untaxed Shopkeepers Join FBR Under Asan Tax Scheme

Nearly 2,000 shopkeepers have entered Pakistan’s formal tax system for the first time under the Asan Tax Scheme, while total registrations reached 9,806 within a month of the scheme’s launch, the government said on Friday.

Data presented at a government review meeting showed that 1,929 registered shopkeepers were previously outside the tax net. So far, 428 shopkeepers have also filed their tax returns.

The remaining registered traders are at different stages of the filing process, with participation reported from both major urban centres and smaller cities.

The government has set an annual tax collection target of Rs50 billion under the scheme, but collections stood at Rs32.5 million as of Friday.

The figures come as the government seeks to expand tax compliance among shopkeepers through a simplified system. The retail sector has traditionally remained one of the more difficult segments to fully incorporate into the documented economy.

The Federal Board of Revenue (FBR) has been directed to resolve technical issues raised by traders and tax lawyers as implementation of the scheme continues.

Minister of State for Finance and Railways Bilal Azhar Kayani also instructed the tax authority to speed up the issuance of FBR plates to shopkeepers who have already submitted their returns.

The government has introduced a graduated penalty system for shopkeepers who fail to pay their tax after the prescribed deadline.

Under the structure, the penalty will be Rs10,000 during the first month after the deadline, rising to Rs25,000 in the second month and Rs50,000 in the third month.

An Urdu-language information booklet has also been issued, explaining the new scheme, the previous return-filing process and penalties applicable in cases of non-compliance.

Officials and trader representatives agreed to maintain daily coordination to address implementation-related issues. The FBR will also increase its engagement with tax bars and tax lawyers.

Trader representatives expressed support for the scheme but informed officials that building awareness among shopkeepers would require additional time.

Kayani said the facility had been specifically designed for shopkeepers and encouraged traders who are still outside the tax system to take advantage of the scheme.

The latest figures were presented during a review meeting chaired by Kayani. The meeting was attended by trader leaders Ajmal Baloch and Kashif Chaudhry, FBR Member Strategic Transformation Dr Hamid Atiq, Member Inland Revenue Operations Zubair Bilal and other senior officials.

Chief commissioners and commissioners from across the country participated through video link and briefed the meeting on their efforts to engage tax bars in their respective areas.