Islamabad: The federal government has announced a major initiative to expand Pakistan’s tax base by bringing approximately 3.5 million shopkeepers into the tax net during the fiscal year 2026-27.
Speaking during the National Assembly’s budget debate, Minister of State for Finance and Revenue Bilal Azhar Kiani said the government is taking practical steps to increase tax compliance and improve revenue collection. The move is part of broader efforts to strengthen the country’s economy and promote a more documented financial system.
According to Kiani, registered traders will receive special green identification plates from the Federal Board of Revenue (FBR). The initiative is designed to recognize compliant businesses and encourage more retailers to become part of the formal tax framework.
He further stated that registered shopkeepers will benefit from a limited audit process under normal circumstances. This measure aims to reduce administrative burdens on businesses while promoting voluntary tax compliance.
The government believes that expanding the tax net will help increase revenue generation, improve transparency, and create a fairer taxation system. Officials say a broader tax base is essential for supporting public services and long-term economic growth.
Economic experts note that bringing millions of retailers into the documented economy could enhance financial accountability and reduce the burden on existing taxpayers. The policy is also expected to improve business records and strengthen fiscal management.
