The Federal Board of Revenue (FBR) will commence a nationwide mapping of markets and individual shops starting this Friday. Minister of State for Finance and Railways Bilal Azhar Kayani chaired a meeting to review the progress of implementing the Asaan tax scheme.
Kayani directed the FBR to ensure that field officers collaborate with trader representatives during the mapping process. The FBR plans to target between 500,000 and 1,000,000 retailers for inclusion in the scheme.
Currently, only about 600,000 commercial meter holders have submitted tax returns out of approximately 4.3 million commercial WAPDA electricity meters nationwide. Traders have the choice to join the Asaan Tax Scheme or remain under the standard tax system, according to Kashif Chaudhry.
Chaudhry noted that Pakistan has developed a pattern of tax non-compliance over the last 78 years. The Minister also confirmed that shopkeepers received a tax scheme tailored to their specific needs.
Furthermore, Kayani stated that penalties under the scheme were set after consulting with traders. The government should prioritise raising awareness among traders before resorting to punitive measures, advised Chaudhry.
Kayani announced a 15-day extension for the filing of tax returns. The penalty structure involves a Rs10,000 penalty in the first month following the return-filing deadline expiry.
A Rs25,000 penalty will apply in the second month after the return-filing deadline expires, and Rs50,000 in the third month. Technical issues concerning the 'other income' column in tax returns, which traders identified, have been resolved.
The scheme has already seen around 190,000 retailers register under its framework, and approximately 0.2 million new taxpayers joined this year, according to Chaudhry.
"Fines should be the last course of action," stated Kashif Chaudhry.
Kashif Chaudhry
