The government plans to continue its retailer tax scheme beyond 2026, with Finance Minister Muhammad Aurangzeb saying the initiative is intended to help small businesses remain within the formal tax system over the long term.
Aurangzeb made the remarks during a meeting at the Finance Division on Friday to review the scheme’s progress, including registrations, tax return filings, and efforts to identify businesses that have yet to register with the Federal Board of Revenue (FBR).
Officials discussed using available data and identification records to locate unregistered retailers. The meeting also covered the verification of business information to ensure that registration records accurately identify the businesses concerned.
The finance minister said the government was working to simplify tax procedures and make compliance easier for retailers. The scheme is intended to provide small businesses with a simpler way to enter the formal tax system and fulfil their tax obligations.
The meeting also reviewed the participation of existing taxpayers, applicable tax payment requirements, filing procedures, deadlines, and other implementation issues.
Aurangzeb emphasized that the scheme should not be treated as a temporary initiative limited to 2026. Instead, it is intended to offer retailers a continuing route into the formal tax system in the years ahead.
The government reiterated its focus on simplifying compliance for small businesses while documenting more economic activity and expanding the tax base.
