ISLAMABAD: The government has introduced a new scheme aimed at broadening the tax base by bringing small shop owners and retailers into the formal tax net, officials said on Friday.
According to the authorities, the initiative is designed to improve tax compliance, document the informal retail sector, and increase revenue collection through simplified registration and filing procedures for small businesses. The move is part of broader fiscal reforms intended to strengthen the country’s revenue system and reduce reliance on indirect taxation.
Officials said the scheme will focus on facilitating small traders by offering easier registration processes, reduced compliance requirements, and awareness campaigns to encourage voluntary participation in the tax system. The Federal Board of Revenue (FBR) is expected to oversee the implementation and coordination of the program.
The government believes that a large segment of the retail sector remains outside the formal economy, limiting the state’s ability to collect taxes effectively. By integrating small shopkeepers into the system, authorities aim to create a more transparent and documented economic structure.
Business community representatives have expressed mixed reactions, with some welcoming measures that simplify taxation while others calling for assurance that new policies will not increase the financial burden on small traders.
Officials added that consultations with trade associations and stakeholders will continue to ensure smooth implementation and to address concerns raised by the business community.
The initiative reflects ongoing efforts by the government to expand the tax net, improve fiscal discipline, and enhance economic documentation in line with broader economic reform objectives.
