Federal Finance Minister Muhammad Aurangzeb said the new initiative is designed for small businesses with annual turnover of up to Rs20 million, offering a straightforward and low-rate taxation structure to encourage participation.
Speaking at a press conference alongside State Minister for Finance Bilal Azhar Kayani, the finance minister said the scheme is based on voluntary registration and aims to reduce complexity in tax filing for small traders.
Under the proposed framework, businesses that join the scheme will pay a fixed 1 percent tax on net income. Registration will be done through a simple form that will be made available in multiple local languages to ensure wider accessibility.
Officials also said that registered shopkeepers will be issued special plaques by the Federal Board of Revenue (FBR), each carrying a unique QR code linked to their tax profile. Point-of-sale systems will also be installed in shops to improve transparency.
Tax inspectors visiting markets will be able to scan QR codes to verify compliance in real time. In case of irregularities, audits will be conducted in consultation with local trader associations, according to the government.
The finance minister added that both filers and non-filers will be eligible to join the scheme, provided filers meet the condition that their turnover has not exceeded Rs20 million annually over the past three years.
Officials believe the scheme could help gradually expand Pakistan’s tax net by reducing barriers for small businesses and encouraging more traders to enter the formal economy.
The government hopes that a simpler, technology-driven approach will improve compliance while also building trust between small traders and the tax system.
