New Tax Scheme for Retailers Planned Amid IMF Negotiations

Updated: 9:48 AM PKT — May 18, 2026

The push for the new tax structure follows the failure of previous voluntary schemes to adequately widen the tax base. This has prompted the shift towards a mandatory registration and fixed tax system for retailers.

Updated: 3:52 AM PKT — May 18, 2026

In a related development, the FBCI has proposed several relief measures for the salaried class in the upcoming budget. The proposals include reducing the income tax rate from 35% to 30% and raising the non-taxable income threshold to 12 lakh rupees from the current 6 lakh.

Updated: 8:22 PM PKT — May 17, 2026

The proposed fixed tax for registered retailers will be set at a rate of up to 1% on their turnover. Final approval for the scheme’s specific details is anticipated during upcoming negotiations with the International Monetary Fund.

Updated: 7:45 PM PKT — May 17, 2026

To further broaden the tax base, the FBR has made digital invoicing mandatory for all sales tax filers by July 31. The revenue authority is also strengthening its audit system by hiring 431 new auditors, with plans to recruit nearly 400 more.

Updated: 5:27 PM PKT — May 17, 2026

The Federal Board of Revenue (FBR) is introducing the new scheme and is reportedly in talks with the IMF to get final approval for the plan. The stated aim of the new initiative is to bring more retailers into the tax net following the failure of previous efforts.