Government Launches New Tax Scheme for Small Shopkeepers

ISLAMABAD: The federal government has formally launched a special and simplified tax scheme for small shopkeepers, aimed at bringing the retail sector into the tax net while making compliance easier for traders.

Federal Minister for Finance Muhammad Aurangzeb, along with Minister of State for Finance Bilal Azhar Kayani and representatives of the traders’ community, announced the scheme at a press conference.

Speaking on the occasion, Finance Minister Muhammad Aurangzeb said the government was moving forward in consultation with the business community. He said simplifying the tax system had long been a demand of traders, adding that the Federal Board of Revenue (FBR) and Punjab Revenue Authority (PRA) were working to facilitate small traders.

The finance minister assured traders that they would not be harassed under the new system, stressing that all segments of society needed to be brought into the tax system to run the country’s affairs.

Minister of State for Finance Bilal Azhar Kayani outlined key features of the scheme, saying small shopkeepers would be able to file their tax returns and pay taxes through a mobile phone application.

Under the scheme, registered traders will also be issued a green plate, which will be displayed at their shops. According to the minister, once the plate is displayed, no FBR official or employee will be allowed to enter the shop without a valid reason.

He further said registered small traders would be completely exempt from the Point of Sale (POS) requirement, providing them additional relief from compliance requirements.

However, small shopkeepers enrolled in the scheme will be required to pay a minimum annual tax of Rs25,000.

The scheme will apply to shopkeepers whose annual sales did not exceed Rs200 million (Rs20 crore) in any of the previous three years.

The government said the initiative was designed to simplify taxation, provide greater certainty to small businesses and expand the country’s tax base.