SM Tanveer hails govt's fixed tax scheme for small traders

Lahore/Islamabad (Web Desk): Prominent industrialist and Patron-in-Chief of the United Business Group (UBG), SM Tanveer, has welcomed the government’s newly introduced 1% fixed-tax scheme for small retailers, describing it as a significant and transformative step toward expanding Pakistan’s tax net.

In a statement, he highly praised the efforts of Finance Minister Muhammad Aurangzeb and State Minister Bilal Azhar Kayani, noting that the scheme has been developed through consultation and mutual trust with trade bodies and shopkeeper associations, which he termed a positive and constructive approach.

Providing details of the new arrangement, he explained that shopkeepers with an annual turnover of up to Rs200 million (20 crore) will now be eligible to pay income tax at a fixed rate of just 1 percent.

He also appreciated the facilitation of withholding tax adjustments and noted that a minimum tax payment requirement of Rs25,000 will apply at the time of filing returns.

During a telephonic conversation with the President of the All Pakistan Traders Association, Ajmal Baloch, SM Tanveer congratulated the trade leadership, stating that their efforts contributed to the Federal Board of Revenue’s (FBR) decision to introduce a simplified one-page income tax return form available in Urdu and regional languages.

He added that the return can also be submitted conveniently through a dedicated mobile application.

Ajmal Baloch, while discussing the agreement reached with the FBR, outlined that shopkeepers joining the scheme will be issued an official registration plate by the tax authority, which must be displayed outside their businesses.

He further explained that this plate will legally protect shops from sudden or unjustified inspections and raids by tax officials.

SM Tanveer emphasized that such collaborative initiatives between the government and the business community are essential not only for expanding the tax base but also for ensuring long-term economic stability and strengthening national financial interests.