The Federal Board of Revenue (FBR) has received only 130 income tax returns under its special scheme for small traders and shopkeepers, far below the 500,000 to 600,000 filings it expected, a senior official said.
Sayyeda Maimuna, Second Secretary at the FBR headquarters’ Transformation Delivery Unit, made the disclosure in an interview. She said the scheme was introduced in consultation with traders to simplify compliance, expand the tax base and reduce the burden of complicated filing procedures.
She expressed disappointment at the low turnout despite consultations with trade bodies. Under the scheme, eligible traders pay a minimum annual tax of Rs25,000 or one percent of annual turnover, depending on the applicable calculation.
They can file a one-page return through the Tax Asaan app or the online system of FBR. Shopkeepers without digital access can seek help at the taxpayer facilitation centres of Regional Tax Offices. Traders may also opt for regular income tax returns, in which case standard tax laws and requirements apply.
Maimuna said participating traders are protected from routine FBR inspections, raids and shop sealing, and display a green identification outside their premises. They are also exempt from certain technical requirements linked to point-of-sale (POS) systems and digital invoicing, and receive relief from withholding tax under Section 153, subject to conditions.
She added that the FBR may still act on significant discrepancies between declared earnings and third-party information, and could bring such matters to the attention of relevant trade associations.
She clarified that individuals earning below the annual taxable income threshold of Rs600,000 are not required to pay income tax, though return-filing obligations may still apply.
On data privacy, Maimuna said the law requires the FBR to protect the information of taxpayers. She said the board is investing in digital systems to better identify economic activity and promote a cashless, paperless economy.
She outlined penalties for non-compliance, including fines for failing to file income tax returns or wealth statements, and, where legally authorised, blocking SIM cards, disconnecting electricity connections or sealing business premises.
Maimuna advised taxpayers to check the official website for authentic notifications on filing deadlines and to disregard fake announcements circulating online. Traders who believe their rights under the scheme have been violated can approach their Regional Tax Office, file a complaint with the Federal Tax Ombudsman, or contact the FBR through its helpline and official email channels.
She said broadening the tax base would distribute the tax burden more fairly among traders, professionals, property owners and salaried individuals, adding that the benefits of wider compliance would emerge gradually.