{
  "id": 18216231,
  "title": "Aasaan tax scheme: when easy becomes difficult",
  "url": "https://urgent.news/2026/11/05/aasaan-tax-scheme-when-easy-becomes-difficult",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-05T00:31:29.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40447427/aasaan-tax-scheme-when-easy-becomes-difficult"
  },
  "original_language": "en",
  "account": "The Aasaan tax scheme, intended to increase tax compliance among traders, has fallen short of expectations. As of March 2026, only 222 traders—far from the targeted one million—had registered for the program. The scheme's objectives were to bring more traders into the tax net, but it has struggled to attract participants, despite being a refinement of a previous scheme called Taajir Dost.\n\nThe differences between the two schemes are notable. The Taajir Dost scheme used a monthly advance minimum tax based on electricity bills and property valuations, whereas the Aasaan scheme levied a flat one percent turnover tax on annual sales, with a minimum of 25,000 rupees. Additionally, the Aasaan scheme had a simplified local language form, which the Taajir Dost scheme did not. The Taajir Dost scheme also offered a 25 percent discount for lump sum or early payments, a 50 percent rebate for new filers, and audit and point of sale exemptions, features absent in the Aasaan scheme.\n\nThe scheme appears to have attracted only established traders and shopkeepers, as it was limited to those with an annual turnover of 200 million rupees, or 20 crore rupees, exempting them from withholding income tax deductions and point of sale requirements. The authorities are relying on strict enforcement measures, including utility cut-offs for non-compliance.\n\nIn a review of economic and financial policies, it was noted that the FBR has introduced a new audit workflow, identifying high-risk cases through a CRM system. Over 150 officers have been trained in this new system, and the FBR has hired 431 auditors as of March 2026, with an additional 396 expected by June 2026. However, the question remains whether this increase in auditors will be sufficient to ensure compliance from millions of traders operating outside the tax framework.\n\nThe IMF's appraisal during the third review stressed the importance of consolidating progress by increasing revenue from the formal sector. The authorities are urged to broaden the tax base in less taxed sectors by strengthening revenue administration, addressing distortions in existing tax policies, and supporting long-term growth. Pakistan's tax-to-GDP ratio remains low, ranking among the lowest in the region. The current ratio of 12.3 percent of GDP is below the 25th percentile of peer countries, excluding the petroleum levy and provincial taxes. The FBR collections alone were 10.6 percent of GDP in 2025.\n\nMoreover, the tax-to-GDP ratio declined to 10.3 percent in fiscal year 2025-26, largely due to the Middle East crisis. The FBR's 2025 Tax Expenditure report estimates that around 1.2 percent of GDP is still protected by tax exemptions, particularly on sales of residential property and certain foods. Compliance could be enhanced through digital invoicing, currently limited to large market players, and the FBR retailer registration program, which has only 222 registrations so far.",
  "summary": "EDITORIAL: Released data indicates that the Aasaan tax scheme has failed to take off, like its precursor Taajir Dost scheme of 2024, with only 222 instead of the hoped for one million traders having registered . The objective of the two schemes was to bring traders within the ambit of the tax net which clearly has not been successful. Be that as it may, there were some differences between the two…",
  "key_points": [
    "Only 222 traders registered for Aasaan tax scheme by March 2026",
    "Scheme aimed to increase tax compliance among traders, but fell short",
    "Authorities relying on strict enforcement measures like utility cut-offs"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}