The government has launched a new mobile-based tax scheme for small shopkeepers, allowing them to file tax returns and pay taxes through their phones without visiting tax offices.
Finance Minister Muhammad Aurangzeb announced the scheme at a press conference alongside Minister of State for Finance Bilal Azhar Kayani, FBR Chairman Rashid Langrial and representatives of the traders’ community.
Under the scheme, eligible shopkeepers can complete their tax filing and payments through a dedicated mobile application. The system also provides an exemption from point-of-sale requirements for qualifying traders.
Participating shopkeepers will receive a green plate to display at their businesses. According to officials, FBR officers will not visit shops displaying the plate, offering traders protection from unnecessary visits and harassment after joining the tax system.
The minimum tax payment under the scheme has been set at Rs. 25,000. Businesses will qualify if their annual sales remained below Rs. 200 million in each of the previous three years.
FBR Chairman Rashid Langrial said the application was designed around two major concerns that have discouraged traders from entering the formal tax system: the complexity of filing returns and uncertainty over what happens after registration.
The new application is intended to allow traders to complete their tax filing in around eight to 10 clicks, without requiring a visit to an FBR office.
The scheme was developed following consultations with traders, with the government saying it incorporated lessons from earlier tax initiatives that failed to gain widespread acceptance.
An Urdu version of the application is already available, while additional language options are expected to be introduced in September.
The government also plans to add districts and markets to the application and continue consultations with chambers of commerce.
Aurangzeb said simplifying taxation had been a longstanding demand from the trading community and reiterated that the government would continue implementing the scheme through consultation. He also assured small traders that they would not face harassment after joining the tax system.
Langrial said the FBR had obtained commercial data from various distribution companies to identify potential taxpayers, although it was too early to determine the scheme’s exact revenue potential.
He said the initiative was expected to bring billions of rupees into the formal tax system over time, with the government focusing not only on immediate revenue collection but also on expanding documentation of the retail and trading sectors.
