Pakistan FBR strengthens chemical import monitoring and extends retailer tax scheme

The Federal Board of Revenue (FBR) in Pakistan is implementing new measures to monitor the Export Facilitation Scheme (EFS) to prevent the misuse of duty-free chemical and dye imports. Following concerns from the Pakistan Chemicals and Dyes Merchants Association (PCDMA), officials are investigating whether tax-concessionary raw materials are being diverted to domestic markets instead of being used for export production. Proposed solutions include linking import permissions to consumption-based formulas and conducting transparent audits.

Separately, Finance Minister Muhammad Aurangzeb has confirmed that the FBR’s retailer tax scheme will continue beyond 2026. The initiative is designed as a long-term strategy to broaden the national tax base by simplifying registration and compliance for small retailers. The government aims to use identification records to locate unregistered businesses and integrate them into the formal economy.