Pakistan Govt Introduces Fixed Tax Scheme to Ease Burden on 3.5 Million Small Traders

ISLAMABAD — The federal government of Pakistan has announced a landmark “Fixed Tax Scheme” aimed at providing significant relief to approximately 3.5 million small traders and shopkeepers across the country, in a move widely welcomed by the business community.
Under the scheme, a shopkeeper can enroll by depositing a one-time amount of Rs. 25,000 in cash. Once registered, the trader will be liable to pay only a flat 1% fixed tax on sales, replacing the previously complex and burdensome tax procedures that many small businesses struggled to navigate.
In a major relief measure, the government has confirmed that traders enrolled in the scheme will not be subjected to any tax audit, offering them peace of mind and encouraging greater participation in the formal economy.
Authorities have clarified, however, that the scheme is exclusively applicable to shopkeepers and brick-and-mortar traders. Street vendors, cart sellers, and roadside stall operators will not be eligible under this initiative.
The move is seen as part of the government’s broader efforts to bring the informal retail sector into the tax net through simplified and trader-friendly policies, rather than punitive measures.