The federal government plans to introduce a new Retailers Scheme in the upcoming budget to increase tax revenue from Pakistan’s retail sector. Officials want to meet economic targets linked with the International Monetary Fund while also expanding the national tax base.
Government teams in Islamabad continue budget discussions with economic experts, traders, and business representatives. In addition, officials have already held several meetings with IMF representatives before the final budget announcement.
Sources from the Federal Board of Revenue said the Retailers Scheme will bring small and medium businesses into the tax net through a simpler registration process. Officials believe many retailers currently operate outside the documented economy. Therefore, authorities now want a practical system that encourages registration instead of creating fear among traders.
Under the proposed plan, retailers with an annual business turnover of up to Rs200 million will register under the new system. Moreover, they will pay a fixed 1% tax on annual turnover, subject to the defined limit.
Officials prepared the Retailers Scheme in Urdu so small business owners across Pakistan can easily understand the rules and registration process. However, the government will not include shop size or commercial area conditions in the upcoming policy.
Economic experts say the new policy may improve market documentation and strengthen revenue collection. Meanwhile, traders continue discussions with government officials on tax rates and implementation methods ahead of the federal budget announcement next month.
Officials also expect the policy to reduce pressure on existing taxpayers because broader participation can increase revenue. At the same time, business groups want simple procedures and stable tax rates. They believe easier registration rules can improve cooperation between traders and tax authorities nationwide.
