Islamabad: The Pakistani government has unveiled plans to broaden its tax base in an effort to alleviate the financial load on current taxpayers. Finance Minister Muhammad Aurangzeb announced this initiative during a joint press conference with Minister of State for Finance Bilal Azhar Kayani, emphasizing the introduction of a fixed tax scheme aimed at small traders and retailers.

According to Radio Pakistan, the scheme proposes a fixed tax rate of one percent, with any previously deducted withholding tax being adjustable. The minimum tax payment is set at 25,000 rupees, and businesses with higher turnovers will be taxed at the same rate based on their sales volume. The scheme is optional and specifically targets traders with annual turnovers up to 200 million rupees. Exemptions from the need to use POS machines are included, with a QR code system being introduced for tax verification by the FBR.

A simplified, single-page form available in multiple languages will facilitate participation in the scheme, which promises exemption from general audits. Both non-filers and current filers can opt in, with penalties outlined for non-compliance with filing requirements.