Govt announces 'Asaan Scheme' to bring small shop owners into tax net

The government on Friday introduced a new fixed tax scheme for small shopkeepers, calling it a major step towards improving the country’s tax system.

Finance Minister Muhammad Aurangzeb announced the voluntary “Asaan Scheme” during a press conference in Islamabad. He was joined by Minister of State for Finance Bilal Azhar Kiani and Federal Board of Revenue (FBR) official Hamid Ateeq Sarwar.

Under the scheme, small businesses earning up to Rs200 million annually will pay a fixed tax of 1 per cent on their net income. Shopkeepers who want to join the scheme will be able to register through a form available in several local languages.

Bilal Azhar Kiani said traders who become part of the scheme will receive official FBR plaques carrying unique QR codes. These plaques will be displayed outside their shops, while a point-of-sale system will be installed inside the businesses.

According to Kiani, tax officials visiting markets will scan the QR codes to access tax records of registered shops. He added that any suspected irregularities would be reviewed through audits conducted in consultation with local traders’ associations.

The scheme is open to both tax filers and non-filers. However, businesses already registered as filers can only join if their annual turnover has remained below Rs200 million during the past three years. Kiani also clarified that kiosks will not fall under the scheme.

Speaking at the event, Finance Minister Aurangzeb said the initiative was designed for three to four million shopkeepers across the country. He said the government developed the plan after discussions with traders’ groups and in response to their demands.