Finance Minister Muhammad Aurangzeb says simplified scheme will bring small shopkeepers into the formal tax system without unnecessary harassment.
ISLAMABAD: The Federal Board of Revenue (FBR) has launched a Retailers Scheme App aimed at simplifying tax compliance for small shopkeepers and encouraging them to join the formal tax system, Finance Minister Muhammad Aurangzeb said on Wednesday.
Addressing a joint press conference with Minister of State for Finance and Revenue Bilal Azhar Kayani following the launch, Aurangzeb said the government was committed to making the tax return system simpler and more accessible while promoting a culture of voluntary compliance.
The finance minister said the retailer scheme had been developed after extensive consultations with the trader community and parliamentary committees. The initiative seeks to address longstanding concerns of small traders by offering a simplified income tax mechanism and reducing unnecessary compliance burdens.
“The effort this time is to make the scheme simple and convenient so that small shopkeepers can feel at ease and be assured that, upon joining the tax net, they will face no harassment,” Aurangzeb said.
He said broadening the tax base was essential for building a sustainable revenue system, adding that every segment of the economy needed to become part of the formal sector.
Unlike previous initiatives, the new scheme distinguishes between small shopkeepers and larger retail businesses. Traders can either continue under the regular tax regime or opt for the simplified scheme, depending on their circumstances.
Aurangzeb also said the government was working to simplify tax returns for salaried individuals as part of broader efforts to facilitate taxpayers.
Minister of State Bilal Azhar Kayani said the retailer scheme had moved from consultation to practical implementation through the newly developed app. He said the scheme was announced on June 5, followed by more than three months of consultations with trader representatives.
Kayani said the government aimed to make it easier for shopkeepers to become tax filers while simultaneously increasing the number of taxpayers and strengthening national revenue collection.
As an incentive, traders who join the scheme by the tax return filing deadline will receive a security-featured registration plate containing relevant details. Those joining after the deadline will also be eligible for the plate, which is expected to cost no more than Rs1,500.
FBR Chairman Rashid Mahmood Langrial said the app had been designed to be simple and user-friendly for small traders. He said registered retailers would receive a bar-coded plate containing their taxpayer details.
Langrial added that tax officials would not be allowed to enter the premises of registered retailers for investigations under the scheme, providing greater assurance to participating shopkeepers.
Trader representatives Ajmal Baloch and Kashif Chaudhary welcomed the initiative, describing the retailer scheme and app as business-friendly. They said traders had been demanding such a simplified mechanism for around 27 years.
They expressed support for the initiative and assured the government that traders across the country would cooperate in improving tax compliance and filing their returns.