Summary Traders can choose between new and existing tax regimes
ISLAMABAD (Dunya News) – The federal government has introduced a fixed tax scheme for small shopkeepers as part of its efforts to expand the tax base and simplify compliance for businesses.
Speaking at a press conference, Federal Minister for Finance Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani said the government is pursuing reforms aimed at broadening the tax system while reducing tax rates rather than increasing them, with the objective of easing the burden on taxpayers.
Finance Minister Muhammad Aurangzeb insisted Pakistan’s economy remained stable despite challenges over the past year, including floods and tensions in the Middle East. He stated that the government managed these difficulties through its own resources and did not require external assistance. He added that establishing a fair and effective tax system remains a key national priority.
During the briefing, Bilal Azhar Kayani announced the launch of the fixed tax scheme for small shopkeepers, saying it had been developed in consultation with traders and business associations.
Under the scheme, retailers with an annual turnover of Rs200 million or less will be eligible to participate. However, shopkeepers will also have the option of remaining within the existing tax system if they prefer.
Kayani said traders joining the scheme will receive a special identification plate from the Federal Board of Revenue (FBR). The plate will display the shop’s name, National Tax Number (NTN) and other tax-related information.
He explained that the plate will include a QR code that can be used for verification by FBR inspectors. According to the new mechanism, inspectors will not be allowed to enter a shop unless the QR code has first been scanned and verified.
The minister said businesses registered under the scheme would be exempt from routine audits. In cases where a special audit is deemed necessary, consultations would first be held with trader organisations. He added that a formal committee would also be established to address audit-related matters.
Highlighting the significance of the initiative, Kayani noted that Pakistan has an estimated 3 to 4 million small shopkeepers. Bringing a substantial number of these businesses into the tax net, he said, would represent an important milestone in the country’s tax reform efforts.
He added that the scheme is being implemented with the support of Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb. The proposal was finalised through cooperation between FBR officials and the trader community.
Kayani expressed confidence that continued collaboration with traders and business organisations would help ensure the successful implementation of the scheme and support broader efforts to improve tax compliance across the country.
