Govt Launches FBR Mobile App for Small Shop Owners

The government has introduced a mobile application tailored for small shopkeepers, enabling them to file tax returns and make payments via their mobile phones. This initiative aims to minimize face-to-face interactions with tax officials under a new tax scheme. Finance Minister Muhammad Aurangzeb addressed this through a press conference, joined by Minister of State for Finance Bilal Azhar Kayani, FBR Chairman Rashid Langrial, and traders' community representatives.

Kayani explained that small shopkeepers can now file their tax returns and pay taxes through the app. The initiative also offers eligible traders an exemption from point of sale requirements. Upon joining, participating shopkeepers will be given a green plate to display at their establishments. FBR officials stated that these shops will not be visited, assuring traders they won't face harassment post-enrollment.

The minimum tax payment under this scheme is set at Rs. 25,000. Eligibility is restricted to businesses whose annual sales were below Rs. 200 million in any of the past three years. Rashid Langrial emphasized that the application was designed to tackle two main issues that previously dissuaded traders from filing taxes: the complexity of tax forms and apprehension about the aftermath of filing.

The app allows taxpayers to complete the filing process in merely eight to ten clicks without visiting an FBR office. The government developed this scheme following discussions with traders, incorporating lessons from past unsuccessful tax schemes. An Urdu version of the application is currently active, with plans to launch others in other languages by September.

The government also aims to integrate districts and markets into the app and continue consultations with various commercial chambers. Aurangzeb highlighted that simplifying the tax system has been a long-standing demand of traders, and stressed the government's commitment to this through consultation. He assured small traders they would not be harassed under the new system.

Langrial mentioned that FBR had gathered commercial data from multiple distribution companies to evaluate the potential tax base, though he cautioned it was too early to estimate the exact revenue that could be generated. Langrial expressed that the government's objective is not just immediate tax collection but also integrating more traders into the formal economy.