Retailers who missed the October 31 tax return deadline face enforcement action and penalties as the government moves to strengthen tax compliance and broaden Pakistan’s tax base.
Islamabad, November 3, 2026: The federal government is preparing to impose fines and penalties on retailers who failed to file tax returns under the Tajir Dost Scheme, following the expiry of the October 31, 2026 deadline.
Minister of State for Finance and Revenue Bilal Azhar Kayani informed the National Assembly Standing Committee on Finance and Revenue on Tuesday that the government was preparing to enter the enforcement phase of the scheme.
He explained that retailers failing to comply would face penalties in addition to their statutory obligation to file income tax returns.
The committee reviewed the implementation of the Tajir Dost Scheme during a meeting in Islamabad, expressing concern over the lower-than-expected response from retailers despite extensive consultations with trade organisations and business representatives.
Kayani reiterated the government’s commitment to broadening the tax base and ensuring effective implementation of the scheme.
The committee was also informed that consultations had been held with the Attorney General for Pakistan and the Federal Board of Revenue (FBR) to ensure that proposed enforcement measures were legally and procedurally sound.
The detailed enforcement plan would be finalised and subsequently submitted to the Prime Minister.
Export Facilitation Scheme under review
The committee also examined the performance and proposed reforms of the Export Facilitation Scheme (EFS), with members seeking details about its financial utilisation, operational mechanism, eligibility criteria and contribution to Pakistan’s exports.
Members raised concerns over alleged misuse of the facility and questioned its effectiveness, particularly in the absence of a corresponding increase in overall export figures.
They stressed that the scheme’s performance should be assessed through verifiable data demonstrating its actual contribution to export growth.
Kayani explained that the EFS was designed to facilitate exporters by reducing the cost of imported raw materials used to manufacture goods for export.
He assured the committee that a comprehensive presentation covering financial utilisation, export performance, eligibility requirements and proposed reforms would be submitted at its next meeting.
Meanwhile, the committee deferred consideration of the Companies (Amendment) Bill, 2026 until its next meeting.
The meeting was attended by members of the National Assembly and senior officials from the Finance Ministry, Ministry of Law and Justice, FBR and Securities and Exchange Commission of Pakistan (SECP).