FBR Maps Shops Nationwide, Targets 1 Million Retailers

The Federal Board of Revenue (FBR) will launch a countrywide survey of markets and individual retail outlets from Friday after the government’s Asaan Tax Scheme received a weaker-than-expected response. The initiative aims to bring between 500,000 and one million retailers into the formal tax system.

The mapping campaign will be conducted alongside representatives of traders’ organisations. FBR officials will visit markets according to a daily timetable to document individual shops and inform business owners about the tax scheme.

The decision was finalised during a meeting led by Minister of State for Finance and Railways Bilal Azhar Kayani, which reviewed the scheme’s implementation. The government will continue convening review sessions to assess progress.

FBR data presented at the meeting showed that Pakistan has approximately 4.3 million commercial electricity meters registered with WAPDA, yet only around 600,000 commercial electricity consumers have submitted income tax returns.

The tax authority intends to bring between 500,000 and one million retailers into the tax system. Of these, approximately 200,000 are expected to join voluntarily, while the remaining businesses will be pursued through enforcement measures.

Kayani instructed FBR field personnel to coordinate with traders’ representatives during the market survey and respond to shopkeepers’ concerns about registration procedures and tax return submission.

Participants were also informed that a technical problem concerning the “other income” section of tax returns, previously highlighted by traders, had now been rectified.

The minister maintained that the government had introduced a tax arrangement tailored to shopkeepers’ needs, leaving little justification for continued failure to submit returns. He added that the penalties associated with the scheme had also been determined in consultation with traders.

Kayani encouraged retailers to take advantage of the additional 15 days granted by the government to complete their tax filings.

According to the minister, retailers who miss the extended deadline will face escalating financial penalties: Rs10,000 during the first month of non-compliance, Rs25,000 in the second month and Rs50,000 in the third month.

The meeting was attended by trader representatives Ajmal Baloch, Kashif Chaudhry and Habib Fakhruddin. FBR Member Strategic Transformation Dr Hamid Atiq, Member Inland Revenue Operations Zubair Bilal and other senior officials were also present. Chief commissioners and commissioners from different parts of the country participated through video conferencing.