In a major step to fight tax evasion, the federal government has decided to raise fines for non-compliant shopkeepers from Rs0.5 million to Rs5 million in the upcoming budget. The Federal Board of Revenue (FBR) shared this plan during a Senate Finance Committee meeting, saying the goal is to register seven million retailers through the Point of Sale (POS) system.
To further crack down on tax fraud, the FBR has also proposed a reward scheme for people who report fake receipts. Informants could earn up to Rs10,000 for tipping off authorities about businesses evading taxes. Officials said that cameras and extra staff will be deployed at retail locations to ensure proper tax compliance.
The upcoming budget will also target sectors known for underreporting, such as poultry, beverages, tobacco, and sugar mills. These sectors have already seen better tax collection under stricter monitoring. The FBR believes that stronger oversight will boost national revenue and reduce illegal practices.
Meanwhile, Senate Finance Committee Chairman Saleem Mandviwala voiced concerns about delayed sales tax refunds, particularly for exporters. Businesses in key sectors like textiles, leather, and sports goods say they face months-long delays. FBR officials assured the committee that efforts are underway to speed up the refund process.
To build public awareness, the government plans to launch a nationwide media campaign against fake receipts and tax evasion. Officials also revealed plans to involve university students in helping monitor retail outlets in cities like Lahore, Karachi, and Islamabad, where daily business closures and fines are already being enforced.
The new fines are expected to take effect in July 2025, pending parliamentary approval. FBR officials stressed that current low penalties are not effective, and tougher measures are necessary to improve tax collection and discipline among shopkeepers.