ISLAMABAD: Finance Minister Muhammad Aurangzeb on Friday announced a voluntary fixed tax regime for small shop owners, part of a push to broaden Pakistan’s narrow tax base.
The “Asaan Scheme” targets small shops with annual earnings of up to PKR 20 million and imposes a 1% fixed tax on net income. Shop owners can enroll using a form available in multiple local languages.
Aurangzeb made the announcement at a press conference alongside State Minister for Finance Bilal Azhar Kiani.
Shop owners who opt into the scheme will receive Federal Board of Revenue plaques displaying a unique QR code to be placed outside their shops, along with a point-of-sale system inside. Tax inspectors conducting market rounds will be able to access tax details by scanning the QR codes. Any irregularities will be subject to audit in consultation with local traders’ associations.
The announcement comes a day after the Pakistan Bureau of Statistics released its Economic Census 2023, which showed that micro and small enterprises dominate the country’s economic landscape. According to the census, 95% of all establishments employ fewer than 10 workers.
The wholesale and retail trade sector leads with 2.9 million establishments, followed by manufacturing (696,558), education (326,868), and human health and social work (123,973).
Household-based economic activities remain a key pillar of Pakistan’s informal economy, with 10.9 million units engaged in various livelihoods. Animal farming leads that segment with 5.6 million units, followed by tailoring, embroidery, carpet weaving, small-scale poultry and tuition centers. Officials said these enterprises provide critical income sources and contribute to women’s empowerment and rural employment.
