Kayani tells NA: Approx 3.5m shopkeepers to be brought into tax net

ISLAMABAD: Minister of State for Finance and Revenue Bilal Azhar Kayani announced on Friday that approximately 3.5 million shopkeepers will be brought into the tax net during the fiscal year 2026-27 as part of the government’s efforts to broaden the tax base and enhance revenue collection.

The Minister expressed these views in the National Assembly debate on the federal budget 2026-27. He said the government’s economic policies are focused on strengthening the economy and promoting inclusive growth.

He said a new scheme had been introduced to bring small traders into the formal tax system.

He said that shopkeepers with annual sales of up to Rs20 million will pay a one percent tax through a simplified registration process, adding the government aims at bringing 3.5 million shopkeepers into the tax net.

Highlighting relief for salaried individuals, he said income tax rates had been reduced across several income slabs, adding the tax rate for annual incomes between Rs2.2 million and Rs2.3 million was reduced from 23 percent to 20 percent, while rates for higher income groups were also lowered.

He said that for those earning Rs3.2 to Rs4.1 million, the rate was reduced from 30 percent to 25 percent, while for income between Rs4.1 to Rs5.6 million it was reduced from 35 percent to 29 percent. For those earning Rs5.6 million to Rs7 million, the rate was cut from 35 percent to 32 percent. He also said the super tax had been abolished.

He congratulated Prime Minister Shehbaz Sharif, Field Marshal Syed Asim Munir, and the economic team for improving Pakistan’s economic position and international standing.

Describing the budget as people-friendly, Kayani said it provides relief to various sectors of society. He recalled that when the government assumed office in February 2024, the economy was facing serious challenges and uncertainty. However, under the PM’s leadership, economic stability was restored, inflation was brought down, foreign exchange reserves increased, and the IMF programme was completed, he said.

He said the government achieved all fiscal targets during FY2025 without introducing any supplementary or mini-budget.

Kayani said exporters had been granted tax relief to enhance competitiveness, while tax incentives for the IT sector had been extended for another three years. Measures were also introduced to support the construction sector, including subsidised housing loans under the Apna Ghar Scheme, he said.

He said Rs300 billion had been allocated for agriculture, along with Rs110 billion under the PM’s Agriculture Youth Initiative, adding customs duty on agricultural machinery has also been abolished to support farmers.

Copyright Business Recorder, 2026