KARACHI, April 24, 2025 — The Institute of Cost and Management Accountants of Pakistan (ICMAP) has emphasized the urgent need for a transparent and efficient tax mechanism to bring traders into the formal tax system.
In its recently released budget proposals for the fiscal year 2025–26, ICMAP called on policymakers to streamline taxation procedures and foster voluntary compliance among traders.
ICMAP highlighted that traders represent a substantial yet under-taxed segment of the economy. It urged the government to build trust and ensure greater tax compliance by simplifying existing tax frameworks. The institute proposed enhancing platforms like the Tajir Dost Portal by introducing automated tax calculations, user-friendly interfaces, and sector-specific modules that cater to the unique operational dynamics of different types of traders.
According to ICMAP, a robust digital infrastructure is key to achieving transparency and efficiency. The introduction of pre-filled tax returns, integrated online payment gateways, and tools for cross-verification and data reconciliation would help reduce errors, fraud, and ambiguity in the tax filing process. These digital solutions would not only cut down on administrative burdens for the government but also lower compliance costs for traders, encouraging them to join the tax net.
“Automation and simplification are essential steps toward improving compliance and increasing revenue collection,” stated the ICMAP. It further noted that transparent tax processes would minimize disputes and foster a healthier relationship between traders and tax authorities. Such trust-building measures are essential in reducing tax evasion and broadening the national tax base.
ICMAP also argued that these reforms would empower traders by offering clarity, reducing fear of audits, and promoting fair treatment across sectors. With simpler procedures and better communication, traders would be more likely to fulfill their tax obligations willingly.
The institute’s recommendations reflect its broader vision for a sustainable, inclusive economy, where all stakeholders—including small and medium-sized traders—contribute equitably to national development. ICMAP reiterated that engaging traders through transparency and efficiency is not just a fiscal imperative but a strategic move to enhance governance and economic stability in Pakistan.
As the government prepares the upcoming budget, ICMAP’s proposals may serve as a roadmap for building a more equitable and streamlined tax system for traders across the country.