Targets Businesses With Turnover Up to Rs200 Million
The federal government on Friday introduced the Fixed Tax Asaan Scheme, a new initiative aimed at expanding the tax base by simplifying compliance requirements for small traders and shopkeepers across Pakistan.
Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani and Federal Board of Revenue (FBR) Member Hamid Attique Sarwar announced the scheme through a recorded message. The initiative follows consultations with trader associations and business representatives seeking an easier tax filing process.
Under the new framework, businesses with annual sales of up to Rs200 million can opt to pay a fixed tax of one percent through a simplified form that will be available in multiple local languages. Officials said traders may either join the new scheme or continue under the existing tax regime.
Moreover, the payable tax will be adjustable against withholding taxes already paid, provided participants pay a minimum of Rs25,000 at the time of filing. Traders joining the scheme will receive a special plaque displaying their registration details, National Tax Number and a QR code for verification.
Incentives Offered as Authorities Seek Wider Compliance
The government has attached several incentives to encourage participation. Traders who opt for the scheme will be exempt from Point-of-Sale requirements and routine tax audits. Furthermore, tax inspectors will not be permitted to conduct inspections if the displayed QR code is verified as authentic.
Officials stated that both filers and non-filers can join the scheme if their annual turnover has not exceeded Rs200 million during the previous three years. However, businesses remaining outside both the fixed tax system and the regular tax regime could face escalating penalties ranging from Rs10,000 to Rs51,000 per month.
According to the FBR, the scheme could cover approximately 3.5 million traders out of an estimated 4.4 million nationwide. Large Tier-1 retailers and major branded businesses will remain outside its scope.
Authorities said participants will gain Active Taxpayer List status, reduced withholding taxes and improved financial credibility. The announcement comes ahead of the federal budget for fiscal year 2026-27, which is scheduled to be presented on June 10 amid ongoing economic reforms and IMF-backed fiscal measures.
