ISLAMABAD – The government has introduced a fixed tax scheme for small shopkeepers as part of its efforts to broaden the tax base and simplify tax compliance for retailers.
Speaking at a press conference, Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani said the scheme had been developed in consultation with traders and business associations. It will apply to shopkeepers with an annual turnover of Rs200 million or less, while eligible businesses will also have the option to remain under the existing tax regime.
Bilal Azhar Kayani said retailers joining the scheme would be issued a special identification plate by the Federal Board of Revenue (FBR). The plate will display the shop’s name, National Tax Number (NTN), and tax-related information. An embedded QR code will allow FBR inspectors to verify the business, and no inspector will be permitted to enter a shop without first scanning the code.
He added that businesses registered under the scheme would be exempt from routine audits. Any special audit would be conducted only after consultation with trader organizations, while a dedicated committee would be established to oversee audit-related matters. He noted that Pakistan has between three and four million small retailers, and bringing them into the tax net would mark a significant milestone.
The minister said the scheme was being implemented with the support of Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb and had been finalized through collaboration between FBR officials and the business community. He expressed confidence that the initiative would succeed with the cooperation of traders.
Meanwhile, Finance Minister Muhammad Aurangzeb said the government was taking steps to expand the tax system while focusing on lowering tax rates rather than increasing them, with the aim of reducing the burden on taxpayers.
He said the economy had remained stable despite last year’s floods and tensions in the Middle East, and that the government had managed various challenges using its own resources without requiring external assistance. He stressed that establishing a fair and efficient tax system remains a key national priority.
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