Fixed Tax Asaan Scheme: App rolled out for tax returns of small traders

ISLAMABAD: The government on Wednesday launched a mobile application for its Fixed Tax Asaan Scheme, allowing small traders and shopkeepers to file their tax returns through the App.

The App was launched during a media briefing, where media persons referred to the dismal state of the economy and questioned the economic team over recently announced awards by the government for Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kayani and Federal Board of Revenue Chairman Rashid Mahmood Langrial.

However, the economic team defended themselves while saying they had not recommended themselves for the awards. The Finance Minister responded that economic stability had been restored compared with the economic turmoil Pakistan faced during fiscal year 2022-23.

Aurangzeb warned small traders and shopkeepers of necessary action if they fail to join either the newly introduced Fixed Tax Asaan Scheme or the regular tax regime, as it seeks to bring every segment of the economy into the tax net, promote a culture of tax compliance, and make them contribute to the national exchequer.

The government says the scheme is aimed at targeting around 4.2 million shopkeepers and small traders by providing them with a simple and optional mechanism to file returns and pay a fixed tax.

Under the scheme, retailers with annual sales of up to Rs200 million can opt for a fixed tax equivalent to one per cent of declared annual sales, subject to a minimum annual tax of Rs25,000. Withholding tax already deducted through utility bills and other sources would be adjustable against the tax liability.

The app generates a payment slip identification number (PSID), enabling traders to pay their tax through the mobile application and subsequently obtain filer status. Existing withholding taxes would be adjustable against their tax liability.

The participating retailers would not be required to install point-of-sale (POS) machines or act as withholding agents, while they would also be protected from routine tax audits and visits by FBR officials for tax-related investigations.

Aurangzeb said the government had attempted to address the longstanding demand of small traders for a simple tax system free from harassment. “The tax system doesn’t work if any strata of Pakistan is not covered under the mainstream,” he said, urging traders to take advantage of the new facility.

Aurangzeb said previous tax schemes had followed a “one-size-fits-all” approach, whereas the new initiative distinguished between small shopkeepers and larger retail enterprises. He maintained that traders could either remain in the regular tax regime or opt for the simplified scheme.

Kayani said the scheme had been designed in consultation with trader representatives to overcome shortcomings that had caused previous tax schemes to fail. However, the government has simultaneously warned that traders who do not avail themselves of the facility could face necessary measures in the future.

Kayani said traders registered under the scheme would receive a security-featured digital and physical plate, adding that an FBR official would not be allowed to enter the premises of a shop displaying the plate to question the trader on tax matters.

The app, currently available in Urdu, would also be launched in Pashto, Balochi and Sindhi by the first week of September, while its Apple Store version would be made available in the coming days.

He said the scheme was announced on June 5, while subsequent efforts focused on developing the app and other facilities for shopkeepers, adding that the consultative process with the traders continued for more than three months and was finalized. Kayani said trader representatives were consulted during the development process to identify the shortcomings of previous schemes and determine how the new initiative could be made easier and more effective.

He said the objective was to make it easier for shopkeepers to become tax filers while simultaneously expanding the tax base and increasing the number of contributors to national revenue. The minister said the initiative was intended to create a “win-win” situation by increasing tax collection while reducing the compliance burden on small businesses through a simplified mechanism.

As an additional incentive, Kayani said traders joining the scheme by the due date of filing the tax returns would receive a security-featured registration plate. He said the plate would be durable and usable for years, adding that those joining after the due date would also receive the plate, with its estimated cost not exceeding Rs1,500.

Responding to a question, the Finance Minister said steps are being taken to simplify the tax returns for the salaried class.

Langrial said the app had been designed to make tax compliance easier for small traders and shopkeepers and remove the fear of harassment. He said that the retailers would be provided a bar-coded plate, containing all details of the taxpayers, and any tax official would not be allowed to enter the premises for any investigations. He also feared over-invoicing under the scheme.

Trader representatives Ajmal Baloch and Kashif Chaudhary welcomed the initiative and claimed that traders had been seeking such a scheme for the past 27 years. They assured the government of cooperation in ensuring tax compliance but also called for a business-friendly environment and greater confidence for the trading community.

The government expects the scheme to generate tens of billions of rupees if successful, while its broader objective is to expand the tax base and reduce dependence on a relatively narrow group of existing taxpayers.

Copyright Business Recorder, 2026