Pakistan has unveiled a tough new tax strategy for retailers after the Tajir Dost scheme failed. The move comes under IMF pressure to reduce the cash economy and expand trader documentation. Authorities aim to boost tax collection and formalize retail businesses.
The IMF has demanded urgent steps to curb cash-based transactions and speed up trader registration. Officials said improved documentation is essential for sustainable revenue growth and broader economic reforms.
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The government targets Rs517 billion from traders by March 2026 and Rs707 billion from large retailers by June. Non-filer retailers will face fines, legal action, and possible enforcement measures under existing tax laws.
Digital receipts and POS systems will be mandatory, with digital invoicing required for traders with annual turnover above Rs500 million by June 2026. Retailers will also be monitored via bank accounts and utility bills, and defaulters risk electricity and gas disconnections. Remote monitoring will cover key sectors like cement and sugar.
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The government aims to add one million new tax filers by June 2026, raising annual returns to 7 million. Provincial governments are tasked with collecting Rs785 billion by March and Rs1,190 billion by June. Officials say these reforms are vital to reduce the cash economy and meet IMF commitments.