ISLAMABAD: Traders across Pakistan have welcomed the government’s newly announced fixed tax scheme for small retailers, describing it as a major step toward simplifying tax compliance and encouraging voluntary participation in the tax system.
All Pakistan Anjuman-e-Tajran President Ajmal Baloch said the new taxation model is significantly easier than previous tax procedures and addresses long-standing concerns of the business community regarding complex filing requirements.
According to Baloch, traders have repeatedly demanded a simple and transparent tax system, arguing that previous tax return forms were so complicated that even educated individuals faced difficulties in completing them.
He praised the government’s economic team for introducing a scheme that is separate from traditional Federal Board of Revenue (FBR) procedures and includes support in multiple languages to make compliance easier for traders across the country.
Under the proposed framework, eligible retailers will pay a fixed 1 percent tax on turnover. Baloch said traders are prepared to fulfill their tax obligations provided the system remains straightforward, predictable, and free from unnecessary administrative hurdles.
He noted that traders have often faced difficulties due to Point of Sale (POS) inspections and compliance checks in the past. Under the new arrangement, businesses that regularly file returns will reportedly display a compliance board at their premises and may be exempt from routine inspections and visits.
The trader leader further stated that retailers paying the prescribed fixed annual tax amount could receive protection from tax audits, providing greater certainty for small businesses and reducing compliance-related concerns.
Baloch also highlighted that advance withholding taxes already collected through electricity bills would be adjusted against final tax liabilities, helping prevent double taxation for compliant businesses.
While welcoming the initiative, he expressed concerns that bureaucratic changes or administrative interference could undermine the effectiveness of the scheme. He urged the government to ensure that the framework remains intact and is implemented in its original form.
According to him, traders support taxation when policies are fair, simple, and transparent. However, any significant changes to the scheme could create uncertainty and affect business confidence.
The business community has also called on the government to limit excessive regulatory intervention and create a more business-friendly environment that encourages documentation and tax compliance.
Trader organizations believe the fixed tax scheme can help expand the tax base, improve revenue collection, and bring thousands of small businesses into the formal economy, provided it is implemented consistently and without unnecessary complications.
