Pakistan launches simplified tax scheme and app for small retailers

Pakistan's federal government has launched a new digital retailer app and a simplified tax scheme designed to bring small shopkeepers into the formal economy. Finance Minister Muhammad Aurangzeb stated that the scheme is optional, allowing small traders to choose between the new simplified system or the regular tax regime. To prevent harassment, small retailers participating in the scheme will receive ‘green plates,’ which signify that Federal Board of Revenue (FBR) officers will not enter their premises. Eligibility for the scheme includes a minimum payment of 25,000 rupees and a requirement that annual sales have not exceeded 200 million rupees in any of the last three years.

In a separate digital initiative, Minister of State for Finance Bilal Azhar Kayani announced that all eligible beneficiaries of the Benazir Income Support Programme (BISP) will be provided with digital wallets this year. These wallets will function similarly to bank accounts, allowing users to transfer funds and pay utility bills. This move is part of a broader government effort to digitize public payments, which have already seen digital transactions rise from 9 percent to 76 percent in government institutions.