Pakistan Introduces Fixed Tax Scheme for Small Retailers
ISLAMABAD — The federal government has launched a Fixed Tax Scheme for small shopkeepers, aimed at broadening the country’s tax base while reducing the burden on the trading community.Federal Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani jointly announced the scheme at a press conference, stating that the government’s focus…
ISLAMABAD — The federal government has launched a Fixed Tax Scheme for small shopkeepers, aimed at broadening the country’s tax base while reducing the burden on the trading community.
Federal Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani jointly announced the scheme at a press conference, stating that the government’s focus is on lowering tax rates rather than increasing them in order to encourage greater compliance.
According to Minister of State Kayani, the scheme was developed in consultation with traders and their representative associations. It will apply to shopkeepers with an annual turnover of Rs 200 million (PKR 20 crore) or less. Retailers who wish to remain under the existing tax regime will also have the option to do so.
Under the scheme, the Federal Board of Revenue (FBR) will issue a special identification plate to registered shopkeepers, displaying the shop’s name, National Tax Number (NTN), and relevant tax information. A QR code on the plate will allow FBR inspectors to verify registration before entering any premises — and no inspector will be permitted to enter a shop without first scanning the QR code, a measure designed to curb harassment and unannounced inspections.
The initiative is seen as a significant step toward formalising Pakistan’s largely undocumented retail sector.
