Govt launches Retailer Scheme App to bring millions into tax net
The Pakistan government, in a bid to facilitate retailers, has formally launched the Retailer Scheme App on Wednesday. While holding a press conference in Islamabad alongside Minister of State for Finance Bilal Azhar Kayani, Finance Minister Muhammad Aurangzeb said that the app has been developed via a consultative process. “If any segment of the country does not come into the national…
On Wednesday, the Pakistani government officially introduced the Retailer Scheme App to help bring thousands of small retailers into the tax system. Finance Minister Muhammad Aurangzeb, speaking at a press conference in Islamabad alongside Minister of State for Finance Bilal Azhar Kayani, announced that the app was developed through a collaborative effort. "If any segment of the country does not come into the national mainstream, the tax system cannot function," Aurangzeb emphasized.
The minister clarified that the tax scheme for small shopkeepers has been simplified and is optional. Retailers can choose to remain in the regular tax regime if they prefer. Several changes have been made to the new scheme to distinguish small retailers from other business classes, according to Aurangzeb. The finance minister highlighted that making the tax system more straightforward is a top priority.
Addressing the media, Kayani explained that the Retailer Scheme App is specifically aimed at unregistered shopkeepers. By using the mobile app, small shopkeepers will be able to become compliant taxpayers. Under the scheme, retailers will not be required to use Point of Sale (POS) systems. Small retailers will be responsible for paying a minimum annual tax of Rs25,000. By the beginning of September, the app will also be available in local languages.
Kayani indicated that the successful implementation of the scheme could bring millions of traders into the tax net, thereby alleviating the tax burden on salaried individuals. In June, the government launched a fixed tax scheme for small retailers, which imposes a 1% tax on annual retail sales up to Rs200 million. Eligible retailers can join this simplified fixed-tax regime by submitting a one-page declaration and paying one percent of their declared annual turnover.
Participating shopkeepers would be exempt from POS requirements, regular tax audits, and withholding agent obligations, with taxes already deducted through utility bills and other means being deducted from their tax liability.
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