FBR plans Rs25,000 penalty for traders filing after October 15

• Traders filing late under the Easy Tax Scheme could face combined registration charges and penalties of Rs 50,000.
• Fewer than 150 new returns were reportedly filed under the scheme despite efforts to increase participation.
• Nationwide income tax filings reached approximately 6.6 million by October 13.

The Federal Board of Revenue (FBR) has reportedly decided to impose a Rs 25,000 penalty on traders who submit income tax returns under the Easy Tax Scheme after October 15, according to FBR sources cited by Dunya News.

Under the reported arrangement, late filers would be required to pay Rs 25,000 in registration charges alongside a separate Rs 25,000 penalty, bringing the combined payment to Rs 50,000. Sources said an extension for registration and return filing would be conditional on these payments.

The reported decision comes amid a weak response to the scheme, which aims to bring more traders into the formal tax system. Despite extensive efforts to encourage registration and filing, fewer than 150 new tax returns had reportedly been submitted under the initiative.

The limited participation has prompted concerns within the government about the scheme’s implementation and its effectiveness in expanding the tax base. The minister of state for finance also expressed concern over the low number of registrations and returns, the report said.

Meanwhile, overall income tax filings across Pakistan have increased. FBR sources said approximately 6.6 million returns for tax year 2026 had been submitted by October 13, compared with around 5.8 million on September 30—an increase of about 800,000.

These nationwide figures cover taxpayers across different categories and do not reflect the performance of the Easy Tax Scheme alone.

The report also outlined different treatment for taxpayers depending on their sources of income. According to the sources, individuals earning income solely from salaries would not receive notices demanding advance income tax payments. Those with income from other sources could, however, be required to pay adjustable advance tax.

Such payments are generally credited against a taxpayer’s final income tax liability, subject to the applicable rules.

For traders who miss the October 15 deadline, the reported charges would increase the cost of completing registration and filing under the scheme. FBR has continued to encourage participation as part of its efforts to document business activity and broaden the tax base.

The precise legal basis, scope and applicability of the reported penalty arrangement remain subject to confirmation through an official FBR notification or clarification.