The federal government has launched the Retailer Scheme App to simplify tax compliance for small shopkeepers and help bring more businesses into Pakistan’s formal tax system. Finance Minister Muhammad Aurangzeb launched the application alongside Minister of State for Finance Bilal Azhar Kayani and the Federal Board of Revenue (FBR) chairman.
The app provides small retailers with a simplified and optional tax regime, allowing them to become filers and submit tax returns directly through their mobile phones. Retailers who prefer the existing regular tax system can continue under the same framework.
Under the scheme, eligible retailers will not be required to install Point of Sale (POS) systems, undergo routine tax audits or act as withholding agents. Small retailers will face a minimum annual tax of PKR 25,000, while businesses with annual sales of up to PKR 200 million can pay tax at 1% of their declared annual turnover.
The government plans to introduce the Retailer Scheme App in local languages by the first week of September to make it easier for traders across Pakistan to access and use the platform. Officials said the initiative could bring millions of small retailers into the tax net, broaden the country’s tax base and increase government revenues while reducing compliance challenges for small businesses.
