Pakistan’s Retailers’ Tax Scheme will continue beyond 2026 as a long-term plan to bring small businesses into the formal tax system, Finance Minister Muhammad Aurangzeb has said.
Aurangzeb said the scheme was not designed as a one-year arrangement. The government aims to make tax registration and payment easier for retailers while gradually bringing more businesses into the tax net.
He made the remarks while chairing a meeting at the Finance Division to review the scheme’s progress and discuss ways to improve registration and widen the tax base. The Minister of State for Finance, the Federal Board of Revenue (FBR) chairman and senior officials attended the meeting.
The finance minister said the government was working to simplify tax procedures so that small retailers could meet their obligations without facing unnecessary difficulties.
The meeting reviewed registrations, tax returns and payment requirements under the scheme. Officials also discussed filing procedures, deadlines and other operational issues that could affect retailers’ participation.
Aurangzeb stressed the need to review how the scheme was working on the ground and address problems that could prevent retailers from registering or filing their returns.
The meeting also focused on identifying businesses that remain outside the tax system. Officials discussed using available data and identification records to locate unregistered retailers and improve the accuracy of registration details.
The FBR briefed participants on its efforts to verify the data and ensure that records correctly identify the businesses concerned.
Aurangzeb called for a balanced approach that makes compliance easier for retailers while ensuring that registration efforts are properly documented and targeted.
The government aims to expand the tax base by bringing more economic activity into the documented economy. Small retailers are part of that effort, as many businesses continue to operate outside the formal tax system.
The meeting reaffirmed the need to make tax compliance simpler and more accessible for small businesses. Aurangzeb said continued progress would depend on effective facilitation and a consistent approach to implementing the scheme.
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