KARACHI: Pakistan’s authorities proposed new tax measures Friday geared toward small retailers, digital earners and importers as a part of the federal finances for the 2026-27 fiscal yr, a push to widen the tax base and curb misuse of exemptions.
The centerpiece of the plan is a Mounted Tax “Asaan Scheme” for retailers with annual gross sales as much as 200 million rupees (about $720,000).
Eligible retailers would pay both a minimal annual tax of 25,000 rupees ($90) or 1% of gross sales, whichever is greater. The scheme is non-obligatory and designed to carry small merchants into the formal tax web with out obligatory audits.
“We have to scale back the tax charge,” Finance Minister Muhammad Aurangzeb informed lawmakers, acknowledging that the documented company sector and salaried employees face a “disproportionate tax burden.”
Aurangzeb mentioned the measure targets roughly 3 million to 4 million small shopkeepers, calling it “an necessary milestone when it comes to increasing our tax web.”
Underneath the scheme, withholding tax already deducted could be adjusted, however retailers would pay a minimum of 25,000 rupees on the time of submitting. In return, contributors could be exempt from the Federal Board of Income’s point-of-sale necessities and from audits.
Retailers who fail to register below both the mounted scheme or the traditional tax regime would face penalties. Road cart sellers stay exempt.
Addressing broader financial issues, Aurangzeb mentioned Pakistan’s financial system remained steady regardless of tensions within the Center East.
“We overcome our challenges through our personal sources, and did not take help from anybody,” he mentioned.
