FBR incompetent to bring people into tax net: Traders

KARACHI: Ajmal Baloch, President of the All Pakistan Traders Association Sindh,  said that the Federal Board of Revenue (FBR) cannot make people tax return filers due to ‘incompetence’, ARY News reported.

Ajmal Baloch, President of the All Pakistan Traders Association Sindh, expressed concerns over the Federal Board of Revenue’s (FBR) capacity to register people as tax return filers.

Speaking at ARY News’ program “Sawal Yeh Hai” with host Maria Memon, Baloch highlighted several issues faced by the business community.

Ajmal Baloch pointed out that the salaried class, both in the public and private sectors, is already paying taxes. He mentioned that the Tajir Dost Scheme was introduced with the promise of converting non-filers into filers. According to Baloch, FBR had communicated that non-filers would become filers by paying a tax of PKR 1,200, thus becoming regular taxpayers. He noted that 63,000 traders became filers following their guidance.

Read More: Tajir Dost Scheme: How important this scheme is for traders?

However, the President of the All Pakistan Traders Association Sindh criticised the FBR’s capacity, stating that it has only managed to register 50,000 to 60,000 people in six months. He emphasised that traders are willing to pay taxes on their income but are hindered by the FBR’s inefficiencies.

Ajmal Baloch also suggested that commercial electricity billpayers could be brought into the tax net by sending them notices. He highlighted the current economic challenges, stating that every trader, whether filer or non-filer, is paying a 10% tax. He lamented that 70% of buying and selling activities in the country have ceased, leaving farmers and shopkeepers distressed.

The business community’s concerns reflect broader issues within the tax system and the need for more efficient processes to encourage compliance and support economic stability.

In a move to bring local traders under the ambit of taxation, the Federal Board of Revenue (FBR) recently launched the ‘Tajir Dost Scheme’, which has been rejected by the traders’ community in Pakistan.

The business community in the country has voiced discontent, stating that the scheme’s introduction was “completely inappropriate” and deviates from established procedures.

Economist Dr Khaqan Najeeb shared his insights during an interview on ARY News’ program pointing out the disparity in Pakistan’s tax system, revealing that out of the 3,200,000 to 3,500,000 businessmen only 300,000 are registered in FBR, and only 150,000 are regular income taxpayers.