Retailer Tax Scheme pilot phase to help identify implementation gaps: Naveed Qamar

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 17th Jun, 2026) Chairman of the National Assembly Standing Committee on Finance and Revenue, Syed Naveed Qamar, said the one-year pilot phase of the Retailer Tax Scheme would provide the government with an opportunity to evaluate its effectiveness and identify and rectify any shortcomings that may arise during its implementation.

He was chairing meeting of the Standing Committee on Finance and Revenue of the National Assembly, to receive detailed briefings from the Federal board of Revenue (FBR) on two major tax reform initiatives: the proposed Faceless Assessment and Audit System and the Retailer Tax Scheme.

The Committee was informed that the Faceless Assessment and Audit System is designed to eliminate physical interaction between taxpayers and tax officials, reduce discretionary powers, enhance transparency, and curb opportunities for collusion.

Drawing on the experience of the faceless customs model, which reportedly contributed to a significant increase in revenue collection, the new framework seeks to modernize tax administration through digitalization and risk-based compliance management.

The FBR briefed the Committee on the three core components of the system: the National Faceless Audit Wing, the National Assessment and Adjudication Wing, and the Field Operations Wing.

Members of the Committee welcomed efforts to modernize tax administration but raised several concerns regarding the proposed system, including the need for a comprehensive cost-benefit analysis, safeguards against algorithmic manipulation and data tampering, technical preparedness of FBR personnel, accountability of faceless officers, and protection of citizens' data and privacy.

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Responding to members' queries, the FBR informed the Committee that multiple independent audits had been conducted, including assessments by international firms, and that robust cyber-security arrangements had been established. The Committee was further informed that the system incorporates self-learning capabilities and multiple layers of quality control and oversight to ensure fairness and transparency.

The Committee also received a detailed briefing on the proposed Retailer Tax Scheme, developed following extensive consultations with trader associations and representatives of the business community. The scheme is intended for retailers with annual sales of up to Rs. 20 crore and proposes a simplified tax mechanism based on turnover.

Participants in the scheme would receive various facilitation measures, including exemption from routine audits and certain withholding and point-of-sale requirements.

Hon. Members expressed concerns regarding the possibility of under-reporting, potential misuse of the scheme, and the need to ensure fairness for other sectors already contributing to the tax system. The government clarified that the initiative is not an amnesty scheme and is being introduced as a one-year pilot project aimed at encouraging documentation and expanding the tax base.

During the meeting, Chairman Syed Naveed Qamar observed that the faceless assessment initiative appeared to be a carefully planned and well-researched reform effort. He emphasized the importance of independent scrutiny, transparency, accountability, and adequate safeguards to protect taxpayers' rights while improving tax administration.