The Fixed Tax Asaan Scheme has been launched by the federal government to expand Pakistan’s tax base and encourage greater participation from small traders and shopkeepers. The initiative targets businesses with annual sales of up to Rs200 million and is designed to simplify tax compliance through a streamlined filing process.
The announcement was made by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and senior officials of the Federal Board of Revenue (FBR). The government said the scheme was developed after consultations with trader associations and business representatives seeking a more practical taxation framework.
Under the Fixed Tax Asaan Scheme, eligible traders will pay a tax equal to one percent of their annual turnover through a simplified tax form. Authorities stated that the form will be available in local languages to make the process easier for business owners across the country.
Officials explained that participation in the scheme will remain voluntary. Traders may either join the simplified regime or continue operating under the existing tax system. Businesses that opt into the scheme will receive a special plaque displaying registration details, tax identification information, and a QR code for verification purposes.
The government has also offered several incentives to encourage participation. Traders joining the Fixed Tax Asaan Scheme will be exempt from Point-of-Sale requirements and routine tax audits. In addition, participants will enjoy Active Taxpayer List status, reduced withholding taxes, and enhanced financial credibility.
Authorities warned that businesses choosing to remain outside both the new scheme and the standard tax regime could face financial penalties. The fines will increase progressively over several months, reflecting the government’s determination to bring more businesses into the documented economy.
According to FBR officials, around 3.5 million traders could benefit from the Fixed Tax Asaan Scheme. The initiative comes days before the federal budget for fiscal year 2026-27 and is expected to play a key role in broadening the tax net while reducing the burden on existing compliant taxpayers.
