Government warns traders of action for not joining tax net

While launching the 'Asaan Tajir' mobile app on Wednesday, Finance Minister Muhammad Aurangzeb warned that necessary action will be taken against small traders and shopkeepers who fail to join either the new 'Fixed Tax Asaan Scheme' or the regular tax regime.

The government aims to bring every segment of the economy into the tax net. Officials clarified that under the new scheme, withholding tax already deducted through utility bills and other sources would be adjustable against the final tax liability.

Furthermore, it was confirmed that retailers participating in the scheme would be protected from routine tax audits and visits by FBR officials for tax-related investigations.

Further details have been released regarding the government's new tax scheme for small traders, officially named the 'Fixed Tax Asaan Scheme'. The mobile application, launched to facilitate the scheme, is available on the Google Play Store under the name "Asaan Tajir" and includes a simple registration form in Urdu.

Minister of State for Finance Bilal Azhar Kayani stated the app was developed with input from trader representatives Ajmal Baloch and Kashif Chaudhry. He confirmed that retailers under the scheme will be exempt from the Point of Sale (POS) system requirement and will pay a minimum annual tax of Rs 25,000. The app is expected to be available in other local languages by the first week of September.

Following the launch of the 'Tajir Dost' mobile application, the government has provided further clarification on the scheme's eligibility. According to the details released, retailers with annual sales of up to Rs 200 million can register under the new system.

Officials also explained that once a shopkeeper successfully registers through the app, a Payment Slip ID (PSID) will be generated to facilitate their tax payments.

Finance Minister Muhammad Aurangzeb has clarified that the newly launched 'Tajir Dost' tax scheme for small traders is optional. During a press conference in Islamabad, he stated that shopkeepers can choose to remain within the regular tax system if they prefer.

The minister added that changes have been made to the scheme to create a clear distinction between small shopkeepers and other business categories. Minister of State for Finance, Bilal Azhar Kayani, also spoke at the event, thanking the trader community for their consultation and guidance in developing the scheme.