Despite its limited time and mandate, the caretaker government has undertaken commendable efforts to stabilize the economy. Of late it has come up with reforms in FBR with the aim to broaden the tax net and restructuring of loss-making enterprises.
One noteworthy initiative is the simplified retailer scheme introduced by the Pakistan Revenue Authority Limited (PRAL), a subsidiary of the FBR. The launch of the mobile application, “Tajir Dost,” as a national business registry is a strategic move to bring millions of retailers into the tax net. The inclusion of already registered persons in the Tajir Dost database will streamline the registration process, making it more accessible for businesses. Under the proposed scheme, the indicative income for retailers will be determined based on the annual rental value, set at 10 percent of the shop valuation. This method aims to document retail businesses, ensuring compliance with income tax regulations. Penal consequences for defaulters, such as shop sealing or monetary penalties equal to monthly instalment dues, underscore the government’s determination to enforce compliance and discourage tax evasion. While the plan to bring retailers into the tax net is a significant step, it is important to acknowledge the historical resistance from the retail sector. Protests and opposition have been common, but bringing these businesses into the tax net is crucial for achieving economic self-reliance. In yet another important move, the caretaker government has actively pursued the privatization of the loss-making Pakistan International Airlines (PIA). This decision aligns with the agreement made with the International Monetary Fund (IMF) for a $3 billion bailout, showcasing the government’s commitment to undertaking bold and unpopular reforms for the greater economic good. Despite the caretaker government’s limited time in office, its achievements lay the groundwork for the next elected government to build upon. The success of these initiatives relies on continuity and steadfast implementation. The challenge for the incoming government will be to sustain and advance these economic reforms to steer the country towards a more stable and self-reliant future.
