Government Launches New Fixed Tax Scheme for Shopkeepers

Updated: 2:28 PM PKT — June 6, 2026

The upcoming federal budget is expected to introduce several new tax measures, including making it mandatory to print the retail price on essential items like tea leaves, dry milk, vegetable ghee, cooking oil, and ketchup to ensure proper sales tax collection. According to FBR sources, dozens of daily-use items will be added to the third schedule.

Additionally, the government is likely to double the Climate Support Levy on petroleum products from Rs. 2.5 to Rs. 5 per litre, effective July 1. This measure is estimated to generate over Rs. 90 billion in revenue in the next fiscal year. The budget may also see the termination of tax exemptions previously granted to the former tribal areas.

Updated: 1:26 PM PKT — June 6, 2026

The government has detailed its ‘Fixed Tax Easy Scheme,’ targeting 3.5 million small shopkeepers with annual sales of up to Rs. 200 million. Under the optional scheme, traders will pay a 1% fixed tax on their declared annual sales. Withholding taxes paid on utility bills can be adjusted against this amount, but a minimum payment of Rs. 25,000 will be required.

Participants will receive an FBR identification plate with a QR code to display at their shops. Both tax filers and non-filers are eligible to join. However, shopkeepers who do not register under either the new scheme or the regular tax system will face monthly fines, starting at Rs. 10,000 and increasing to Rs. 50,000 by the third month.