Out of 3.1m retailers in country, only 270,000 file returns

ISLAMABAD: Out of 3.1 million retailers across the country, only 270,000 are return filers during the tax year 2023 with a tax contribution of only Rs34 billion into the national kitty, official data shows.

On the other hand, the voiceless salaried class paid out Rs375 billion during the last fiscal year 2023-24 which ended on June 30, 2024. With increased tax rates, the salaried class is estimated to pay a tax amount of Rs450 billion during the current fiscal year. The exporters who earned in foreign exchange had paid Rs80 to 90 billion in the shape of fixed income tax regime during the last financial year but now the government brought them into a normal tax regime.

The Agriculture Income Tax (AIT) paid by the largest feudal/agriculturists, a majority of whom belong to well-connected elites having political clout and mostly present in parliament, contributed just peanuts and paid out AIT of Rs two billion.

Tax details of retailers obtained by The News from all 25 field formations of the FBR across the country show on Thursday that the total number of registered retailers stood at 416,000 out of which approximately 269,000 are return filers who had paid only Rs33.98 billion during the tax year 2023.

In the Corporate Tax Office (CTO) Islamabad, there are only 44 filers from retailers who have paid Rs12 million. In CTO Karachi, 2,477 return filers have paid Rs1.15 billion. In CTO Lahore, 1,807 return filers belong to retailers who paid out Rs507 million. In Large Tax Office (LTO) Islamabad, 30 return filers paid Rs205 million. In LTO Karachi, there are 114 return filers from retailers who have paid Rs2.04 billion in tax year 2023. In LTO Lahore, 54 return filers paid income tax of Rs818 million. Also in LTO Multan, 10 return filers paid Rs90 million in tax.

In Medium Taxpayer Office Karachi, 169 return filers paid out a tax of Rs1.2 billion. In RTO Abbottabad, 3,632 return filers paid out tax of Rs231 million. In RTO Bahawalpur, 20,117 return filers paid a tax of Rs982 million. In RTO Faisalabad, 24,921 return filers paid a tax of Rs1.774 billion in the national kitty in the tax year 2023.

In RTO Gujranwala, 10,105 return filers paid a tax of Rs643 million. In RTO Hyderabad, 10,065 return filers paid Rs770 million. In RTO Islamabad, there are 6,487 return filers from retailers who paid a tax amount of Rs1.262 billion. In RTO Lahore, there are total return filers of 41,454 from retailers who paid out a tax amount of Rs7.115 billion in tax year 2023. In RTO Multan, 21,727 return filers paid a tax amount of Rs1.293 billion.

In RTO Peshawar, 13,547 return filers paid a tax amount of Rs1.687 billion. In RTO Quetta, there are a total of 3,863 return filers with payment of tax amount of Rs379 million. In RTO Rawalpindi, there are total return filers of Rs24,570 with a tax payment amount of Rs2.488 billion during the tax year 2023. In RTO Sahiwal, the total number of return filers is 13,116 with payment of tax amount of Rs754 million.

In RTO Sargodha, the total number of return filers is 13,688 with a tax payment amount of Rs878 million. In RTO Sialkot, the total number of return filers is 17,112 with payment of tax amount of Rs861 million. In RTO-1 Karachi, the total number of return filers is 15,759 with payment of tax amount of Rs3.932 billion. In RTO-2 Karachi, the total number of return filers stood at 15,189 with payment of tax amount of Rs2.177 billion.

When contacted, one top official of FBR told on condition of anonymity that the Tajir Dost Scheme was scrutinised and endorsed by the IMF so it would be very hard to make changes to it at this stage when Pakistan was vying for a secure bailout package of $7 billion under the Extended Fund Facility.