Shopkeepers who fail to register under Pakistan’s Easy Tax Scheme could soon face steep penalties. Those who also skip filing tax returns through the regular system risk fines of up to Rs. 50,000. Officials shared these details during a review meeting chaired by Minister of State for Finance and Railways Bilal Azhar Kayani on Friday.

Kayani directed the Federal Board of Revenue and relevant authorities to help shopkeepers file their returns without delay. He also asked them to ensure shopkeepers receive their FBR plates quickly. If shopkeepers miss the filing deadline, the shopkeepers tax fines will apply in stages.

The penalty starts at Rs. 10,000 in the first month after the deadline. It then rises to Rs. 25,000 in the second month, and finally reaches Rs. 50,000 by the third month. Therefore, delays can quickly become expensive for non-compliant shop owners.

The government has given shopkeepers two clear options going forward. They can register under the Easy Tax Scheme and pay tax based on turnover. Alternatively, they can submit their tax return through the existing system. However, shopkeepers who choose neither option will face penalties.

The scheme has already seen notable early participation. Within its first month, 9,806 shopkeepers joined the Easy Tax Scheme. Notably, 1,929 of them were entirely new taxpayers who had never previously entered the tax system. So far, 428 registered shopkeepers have filed their returns, while others remain at different stages of the process.

Additionally, authorities have issued an Urdu-language information booklet explaining the scheme. The booklet also covers the existing tax-filing procedure and the penalties that apply after the deadline. Meanwhile, officials confirmed that shopkeepers from both large and small cities are taking part in the scheme. Finally, the government expects participation to grow as awareness of the new rules spreads.