Finance Minister Muhammad Aurangzeb has announced that the government is expanding the tax net to ease the burden on existing taxpayers and strengthen revenue collection. Speaking at a joint press conference in Islamabad alongside Minister of State for Finance Bilal Azhar Kayani, he said Pakistan’s economy remained stable despite last year’s floods and ongoing tensions in the Middle East, adding that the country managed these challenges through its own resources without seeking external assistance.
To support tax documentation, the government has introduced an optional fixed tax scheme for small traders and retailers with annual turnover of up to Rs200 million. Under the scheme, businesses will pay a fixed tax rate of one percent, with a minimum payment of Rs25,000, while previously deducted withholding taxes will be adjustable.
Participants will be exempt from POS machine requirements and routine audits. Traders who fail to join the scheme or file under the regular tax system may face escalating fines.
