FBR shifts to a data-driven tax policy, targets high-potential retailers

In alignment with an IMF-backed commitment to generate Rs 50 billion by fiscal year-end, the FBR will now target larger retailers through data analysis of income tax returns and commercial electricity usage rather than physical surveys. This shift aims to identify tax evasion more accurately, especially in high-revenue areas such as wholesale and upscale retail zones.

The revised scheme temporarily suspends the registration of smaller traders, concentrating efforts on businesses with substantial revenue potential. However, the IMF’s approval of these changes is still pending, as the fixed-tax policy has not delivered the expected results.