Traders across Pakistan have welcomed the government’s newly introduced fixed tax scheme for small retailers, calling it a major step toward making the tax system simpler and more business-friendly.
Speaking on behalf of the trader community, Ajmal Baloch, President of the All Pakistan Anjuman-e-Tajran, praised the government’s efforts and said the new scheme is much easier than previous tax systems.
According to Ajmal Baloch, traders have been demanding a simple and understandable tax filing process for many years. He said that under the old system, tax forms were so complicated that even educated people often found them difficult to complete without professional help.
He appreciated the government’s economic team for designing a system that is simple and practical for small businesses. He also noted that the scheme has been prepared outside the traditional framework of the Federal Board of Revenue (FBR) and includes support in multiple languages, making it easier for traders from different regions to understand and use.
Under the new scheme, eligible traders will pay a fixed tax of 1 percent on their annual turnover. Baloch said that most traders are willing to pay taxes as long as the system remains transparent, fair, and easy to follow.
He explained that many traders previously faced difficulties due to frequent inspections and visits related to the Point of Sale (POS) system. According to him, these inspections often created unnecessary pressure and disrupted business activities.
Under the new arrangement, businesses that file their tax returns will receive a special board or certificate to display at their shops. Once registered under the scheme, traders will not face routine visits or inspections from FBR officials, which the business community sees as a major relief.
Ajmal Baloch also highlighted another important feature of the scheme. He said traders who pay at least Rs. 25,000 annually under the fixed tax system will be exempt from tax audits. This provision is expected to reduce concerns among small business owners about lengthy audit procedures.
However, he expressed concern that government officials or bureaucratic departments could make changes to the scheme in the future. He stressed that the business community wants the government to protect the scheme and ensure that its original structure remains intact.
He further explained that many traders already pay advance withholding taxes through their electricity bills. Under the new system, these payments will be adjusted against their final tax liability, ensuring that traders are not taxed twice on the same income.
While welcoming the initiative, Ajmal Baloch warned that traders could return to protests if significant changes are made to the scheme after its implementation. He urged the government to keep its commitments and prevent unnecessary interference by officials.
The trader leader also raised concerns about customs warehouse operations, alleging that there have been cases of losses and theft involving imported cotton consignments. He called on authorities to investigate such issues and improve oversight.
Finally, Ajmal Baloch urged Prime Minister Shehbaz Sharif to reduce excessive bureaucratic involvement in business matters and ensure that traders can operate without unnecessary hurdles. He said a simple tax system, combined with a supportive business environment, would encourage more traders to join the tax net and contribute to national revenues.
The trader community believes that if implemented properly, the new fixed tax scheme could improve tax compliance, reduce disputes between businesses and tax authorities, and help create a more cooperative relationship between the government and the business sector.
