Islamabad: Finance Minister Muhammad Aurangzeb has stated that the government aims to expand the tax net to alleviate the burden on existing taxpayers. Addressing a joint press conference alongside Minister of State for Finance, Bilal Azhar Kayani, in Islamabad, he noted that Pakistan's economy remained resilient despite last year's floods and the ongoing Middle East conflict. He emphasized that Pakistan overcame these challenges using its own resources without seeking foreign assistance. He stressed that expanding the tax net is essential for revenue generation.
Fixed Tax Scheme for Small Traders
A fixed tax scheme is being introduced for small traders and retailers. Bilal Azhar Kayani provided details, stating that the scheme carries a fixed tax rate of one percent, and any withholding tax already deducted will be adjustable. The minimum tax payment under the scheme is set at 25,000 rupees, while businesses with higher turnover will pay tax at one percent based on their sales volume.
The optional fixed tax scheme has been developed in consultation with small traders and retailers. It is applicable to traders with an annual turnover of up to 200 million rupees. Shop owners opting for the fixed tax scheme will be exempt from using point of sale (POS) machines. A plaque with a QR code will be displayed at shops, which FBR officials can scan to verify the taxpayer status of the business.
Simplified Registration Process
A single-page form has been introduced for small traders and retailers, available in Urdu and regional languages. Those wishing to benefit from the fixed tax scheme must submit the form along with a minimum payment of 25,000 rupees. Traders who prefer not to join the fixed tax scheme can remain under the general tax regime, and any already deducted withholding tax will be adjustable.
Retailers and small traders enrolled in the fixed tax scheme will be exempt from general audits. A committee will be established to address any audit-related issues. Both non-filers and existing filers are eligible to join the scheme. Traders who are filers and wish to join must have had a turnover of 200 million rupees or less during the previous three years.
Penalties for Non-Compliance
Those who neither file a return under the fixed tax scheme nor become filers through the general tax regime will face fines: 10,000 rupees for the first month, 25,000 rupees for the second month, and 50,000 rupees for the third month.
