ISLAMABAD: A parliamentary committee on Tuesday questioned the limited success of the traders’ tax registration scheme, reminding State Minister Bilal Azhar Kayani of his repeated pledges to bring unregistered tradersinto the taxnet.
The government launched the Tajir Dost Scheme (TDS) with high expectations, projecting it as a historic initiative to bring most traders under the tax net.
The National Assembly Standing Committee on Finance and Revenue reviewed TDS’s performance.
Committee chairman MNA Naveed Qamar expressed scepticism, noting that the government had expected 80 per cent of shopkeepers to register. ‘If not even 20pc have joined, you are back to square one,’ he remarked while responding to Mr Kayani’s explanation, pressing for details on the enforcement mechanism.
The committee subsequently reviewed the implementation of the TDS and expressed concern over the lower-than-anticipated response from retailers, despite extensive consultations with trade organisations and business representatives.
The minister further informed the committee that the deadline for filing returns under the scheme had expired on Oct 31, and the government was now preparing to initiate the enforcement phase. It was explained that non-compliant retailers would be liable to penalties, in addition to fulfilling their statutory obligation to file tax returns.
Responding to a question, Mr Kayani assured the committee that a complete procedure would be presented within days regarding the enforcement drive.
The state minister said the government remained committed to broadening the tax base and implementing the scheme. It was further informed that consultations had been held with the Attorney General for Pakistan and the FBR to ensure the legal and proceduralsoundness of the proposed enforcement measures.
The detailed enforcement plan would be finalised and subsequently submitted to Prime Minister Shehbaz Sharif, he said.
Mr Kayani acknowledged the deep-rooted culture of tax evasion in Pakistan and traders’ fear of the FBR’s role after registration. He emphasised that the scheme was designed in consultation with trader leaders and incorporated their demands. ‘We want people to come into the tax net and contribute to national revenue,’ he said.
Export finance The committee also reviewed the performance and proposed reforms of the Export Facilitation Scheme (EFS) and the economic implications of border closures.
Members sought a comprehensive assessment of EFS utilisation, operational mechanisms, eligibility criteria, and its contribution to enhancing Pakistan’s exports. Concerns were expressed over the alleged misuse of the facility and the absence of a corresponding increase in overall export figures. Members emphasised that the scheme’s effectiveness must be assessed through verifiable data showing its actual contribution to export growth.