The federal government will launch a crackdown on one million non-filer retailers, after a one percent fixed tax scheme failed to draw them into the tax net.
Federal Board of Revenue (FBR) Chairman Rashid Langrial told a Senate committee that retailers who stay outside the tax net will face strict action.
According to FBR officials, only 600,000 of the country’s 4.3 million retailers are registered filers, leaving 3.7 million outside the tax system.
The FBR acknowledged that retailers showed little interest in the fixed tax scheme, which had been described as highly favorable. The board said the crackdown will focus on 1 million non-filers who did not benefit from the scheme.
Minister of State for Finance Bilal Azhar Kayani said the government will have to adopt a “carrot and stick” policy to widen the tax base.
