THE revelation that only a mere 105 retailers have registered under the Tajir Dost Scheme sheds light on a long-standing issue in our tax landscape: the reluctance of retailers to enter the tax net. This reluctance, coupled with the staggering number of unregistered retailers across the country, poses a significant challenge for tax authorities. However, the Federal Board of Revenue (FBR) is contemplating a bold move to address this issue by considering drastic administrative measures.
Under the proposed plan, the FBR aims to abolish the Non-Active Taxpayer List (Non-ATL) and impose a substantial tax rate of 10 to 15 percent on sales to unregistered retailers. Such measures are designed to make operating as an unregistered retailer economically unviable, thereby compelling them to enter the tax net. This move comes as a response to the persistent resistance from retailers towards tax compliance. Despite numerous incentives and schemes introduced by the government to encourage registration, the response has been lacklustre at best. The registration of only a negligible number of retailers under the Tajir Dost Scheme underscores this ongoing challenge. In light of this situation, there should be no leniency towards non-registered retailers. The proposed measures by the FBR are indeed the need of the hour. By making non-registration economically disadvantageous, it sends a clear message that tax evasion will not be tolerated. However, it is crucial to ensure that these measures are implemented effectively and fairly. Moreover, while addressing the issue of unregistered retailers is essential, attention must also be given to bringing other potential sectors into the tax net. This will ultimately ease burden on the honest tax payers and is the only way to steer the country towards self-reliance. Then the salaried persons form a significant portion of the taxpayer base but often face complexity and confusion when filing their returns. Streamlining the forms, eliminating unnecessary jargon, and providing clear instructions can significantly enhance their understanding and confidence in the tax filing process.
