Pakistan has launched a simplified tax scheme for small traders and shopkeepers. The initiative aims to expand the tax base and improve compliance.
Under the new scheme, eligible traders will pay tax equal to 1 percent of declared annual sales. The government expects the measure to bring more retailers into the tax net.
Officials announced the initiative during a press conference on Wednesday. The Federal Board of Revenue also launched a dedicated mobile application.
New Scheme Targets Small Businesses
The Fixed Tax Asaan Scheme applies to traders with annual sales below Rs200 million. Both registered and unregistered traders can use the application.
State Minister for Finance Bilal Azhar Kayani said officials developed the scheme after consultations with traders. He added that stakeholders also helped finalise the mobile application.
The tax amount will include withholding tax under the new framework. Traders with annual turnover of Rs200 million must pay at least Rs25,000 in tax.
Moreover, participants will not need to install Point of Sale machines. The government hopes this feature will simplify compliance for small businesses.
Traders Can Choose Preferred Tax System
Finance Minister Muhammad Aurangzeb said participation in the scheme remains optional. Traders may continue using the regular tax system if they prefer.
He explained that businesses can choose whichever tax structure best suits their operations. The government aims to encourage voluntary compliance through flexibility.
Pakistan continues efforts to increase tax revenue and broaden the tax base. The country’s tax-to-GDP ratio remains among the lowest globally.
Meanwhile, authorities are introducing additional reforms to modernise tax administration. These include an artificial intelligence-based faceless system for inland revenue operations.
Officials believe the new measures will improve transparency and efficiency. They also hope the reforms will support sustainable economic growth and strengthen revenue collection.
