Simplified “Asaan” tax regime aims to expand formal retail sector
ISLAMABAD, June 12, 2026 — Pakistan launches fixed tax scheme for retailers under Rs200 million annual turnover as part of Budget 2026–27, introducing a simplified taxation structure aimed at improving compliance and widening the tax net.
The new “Asaan” scheme was announced by Finance Minister Muhammad Aurangzeb while presenting the federal budget in the National Assembly on Friday.
Simplified Tax Structure for Small Retailers
Under the scheme, eligible retailers will pay either a minimum fixed tax of Rs25,000 per year or 1% of total annual sales, whichever is higher.
Officials said the framework is designed to reduce administrative complexity for small and medium-sized retailers while improving transparency and efficiency in tax collection.
Push to Expand Tax Base
The government said the initiative aims to bring more retail businesses into the formal economy by simplifying compliance requirements and reducing paperwork.
Policy makers believe the streamlined structure will encourage registration and improve revenue visibility in the retail sector.
Part of Broader Budget Reforms
The measure forms part of wider Budget 2026–27 reforms, which also include salary and pension increases, minimum wage adjustments, and targeted tax relief measures across key sectors.
Finance Minister Muhammad Aurangzeb said the government’s approach focuses on balancing economic relief with structural reforms to support sustainable growth.
Focus on Documentation and Compliance
Officials added that broader fiscal adjustments introduced in the budget are aimed at improving economic documentation and encouraging compliance-driven revenue generation.
The retail tax scheme is expected to play a key role in expanding Pakistan’s formal tax base while easing compliance for smaller businesses.
