ISLAMABAD: Ahead of the federal budget for FY2026-27, the government has introduced a new Fixed Tax Asaan Scheme aimed at bringing millions of small traders and shopkeepers into the tax net through a simplified and business-friendly tax system.
The announcement was made by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and Federal Board of Revenue (FBR) Member Hamid Attique Sarwar. The new initiative comes after the Tajir Dost Scheme failed to significantly expand the country’s tax base.
Under the Fixed Tax Asaan Scheme, traders with an annual turnover of up to Rs200 million will be eligible to participate. Businesses joining the scheme will pay a fixed tax of one percent through a simplified tax form that will be available in local languages, making tax compliance easier for small business owners.
Officials said the scheme would remain voluntary, allowing traders to either join the new regime or continue under the existing tax system. Participants will receive a special plaque displaying their registration details, National Tax Number (NTN), and a QR code. Tax officials will be able to verify compliance through the QR code, reducing unnecessary inspections and improving transparency.
The government has also announced significant incentives for participating businesses. Traders opting for the scheme will be exempt from Point-of-Sale (POS) requirements and routine audits. Any disputes arising under the scheme will be resolved in consultation with relevant trader associations.
According to officials, both existing taxpayers and non-filers can join the scheme if their annual turnover has not exceeded Rs200 million during the previous three years. However, businesses that choose to remain outside both the normal tax regime and the new scheme could face monthly penalties ranging from Rs10,000 to Rs51,000.
FBR officials estimate that nearly 3.5 million of Pakistan’s 4.4 million traders could fall under the new framework. Large Tier-1 retailers and branded businesses will not qualify for the scheme.
The government believes the initiative will encourage tax compliance, improve documentation of the economy, and provide benefits such as Active Taxpayer List (ATL) status, lower withholding taxes, and stronger financial credibility. The move is expected to play an important role in the upcoming Budget 2026-27 as Pakistan continues economic reforms under the IMF programme.
