ISLAMABAD: In a significant move aimed at dragging millions of small traders into the tax net without the usual bureaucratic nightmares, Pakistan unveiled the ‘Fixed Tax Asaan Scheme’ on Friday, a voluntary, simplified tax regime for shopkeepers and small business owners with annual turnover of up to Rs 200 million, promising exemption from audits, point-of-sale requirements, and even intrusive inspections.
The announcement was made through a recorded message by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and Member of the Federal Board of Revenue (FBR), Hamid Attique Sarwar.
ملک بھر کے چھوٹے دکانداروں کے لئے فکسڈ ٹیکس سکیم کا اعلان کر دیا گیا ہے جس کا مقصد پاکستان میں ٹیکس نیٹ بڑھاناہے۔ حکومت یہ سکیم تاجر اور دکاندار تنظیموں کے نمائندوں کی مشاورت اور ان کے مطالبے پر لائی ہے۔ 20 کروڑ یا اس سے کم سالانہ فروخت والے دکاندار اس سکیم کا حصہ بن سکتے ہیں جس… pic.twitter.com/KSLtfSAciW
— Bilal Azhar Kayani (@BilalAKayani) June 5, 2026
They emphasised that the fixed tax regime had been finalised after extensive consultations with trader bodies, responding directly to long-standing demands for a hassle-free compliance mechanism.
How the Scheme Works
Kiani, who led the government’s negotiation team, explained that eligible businesses would pay a tax of just one percent through a simple form available in all local languages. The tax paid would be adjustable against any withholding tax already deducted, provided a minimum of Rs25,000 is paid at the time of filing. Otherwise, the standard 1% rate applies.
Traders who opt in will receive a special plaque bearing a QR code, displaying their name, registration number, and National Tax Number (NTN). In a groundbreaking assurance, the minister stated that any tax inspector scanning a genuine QR code would be barred from entering the premises for tax-related inspections.
Key Benefits and Exemptions
- No POS requirementand no audits for scheme participants
- Any tax disputes, in exceptional cases, will be resolved in consultation with relevant traders’ associations
- Kiosks and pushcart vendorsare fully exempt from the scheme
- Participants gain Active Taxpayer List (ATL) status, lower withholding taxes, and improved financial credibility
Who Can Join?
Both non-filers and existing filers are eligible, provided:
- Annual turnover has not exceeded Rs200 million in any of the preceding three years
- Minimum tax payable is higher than what was paid in the previous year
- The business has operated for at least three years and maintains a physical shop or premises
Penalties for Staying Out
A third category of traders, those who remain outside both the fixed tax scheme and the normal tax regime, will face escalating fines:
- Rs10,000 per monthfor the first month
- Rs25,000 per monthfor the second month
- Rs51,000 per monthfrom the third month onward
Trader Coverage and Exclusions
Sarwar revealed that out of approximately 4.4 million traders nationwide, nearly 3.5 million would be covered under the new scheme. Larger Tier-1 traders, mostly in the branded sector and estimated between 50,000 and 100,000, will not be allowed to opt for the scheme.
“This should not be described as an amnesty scheme,” Sarwar clarified, stressing that even small contributions from those currently paying little or no tax would make a significant difference rather than burdening already compliant taxpayers.
Lessons from the past
Kiani expressed confidence that the scheme, designed based on lessons from past failed initiatives, “would be successful this time.” Traders can register via the FBR website, mobile apps, or tax practitioners, and must maintain simple, organised records of sales, expenses, and purchases.
The scheme’s rollout comes just days before the federal budget for fiscal year 2026-27, scheduled for presentation on June 10, which is expected to be formulated under tight oversight from the International Monetary Fund (IMF).
