130 returns filed in Pakistan under traders’ scheme — The Express Tribune

Pakistan’s Federal Board of Revenue (FBR) has received only 130 income tax returns under a special scheme for small traders and shop owners. The agency had expected between 500,000 and 600,000 submissions, The Express Tribune reports.

The low number of submitted returns was reported by Saeeda Maimoona, second secretary of the Transformation Delivery Unit at FBR headquarters. According to her, the scheme was introduced after consultations with trade representatives to simplify compliance with tax requirements, broaden the tax base and reduce the complexity of filing returns.

Terms of the simplified scheme

Programme participants may pay at least 25,000 Pakistani rupees per year or 1% of annual turnover, depending on the applicable calculation. The one-page return can be filed through the Tax Asaan app or the FBR online system.

Small shop owners without access to digital services can receive assistance at taxpayer facilitation centres at regional tax offices. Traders may also choose the standard procedure for filing returns, but general tax law requirements will then apply to them.

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Inspections and sanctions

Maimoona noted that the scheme provides its participants with protection from routine FBR inspections, raids and shop sealing. Such establishments are to display a green identification mark. At the same time, the simplified procedure does not preclude the FBR from responding to significant discrepancies between declared income and data received from third parties. In such cases, the agency may refer the matter to the relevant trade associations.

Persons with annual taxable income below 600,000 Pakistani rupees are not required to pay income tax, although return-filing requirements may apply to them. Programme participants were also exempted from certain technical requirements related to POS systems and digital invoicing and, under certain conditions, from tax withheld under Section 153.

Failure to comply with the requirements may result in fines for not filing returns or asset information. In cases provided for by law, SIM cards may be blocked, electricity disconnected or premises sealed.