Islamabad (Web Desk): Finance and Revenue Minister Senator Muhammad Aurangzeb on Wednesday said the government was determined to overhaul the tax return process by making it easier for taxpayers and encouraging more people and businesses to comply with their tax obligations.
Addressing a press conference alongside Minister of State for Finance and Revenue Bilal Azhar Kayani after the Federal Board of Revenue (FBR) introduced its Retailers Scheme App, Aurangzeb said work was also being carried out to make tax filing more convenient for salaried taxpayers.
He said the newly launched application was intended to provide small shopkeepers with a straightforward way to meet their tax responsibilities and voluntarily enter the formal tax system.
The initiative, he added, would help increase the number of taxpayers and ultimately strengthen the country’s revenue base.
Aurangzeb said the scheme was formulated following detailed consultations with traders and parliamentary committees.
The government, he noted, had tried to design a system that would be easy to understand and use while protecting small businesses from unnecessary difficulties or harassment during the tax process.
The minister said small traders had repeatedly called for a simple income tax mechanism that would allow them to become part of the tax system without facing excessive complications.
He said the latest initiative sought to fulfil that long-standing demand by creating an environment in which shopkeepers could enter the tax net with confidence.
“The effort this time is to make the scheme simple and convenient so that small shopkeepers can feel at ease and be assured that, upon joining the tax net, they will face no harassment,” Aurangzeb said.
He underlined the importance of expanding the tax base for creating a financially sustainable system, saying all sectors of the economy should gradually become part of the formal structure.
The minister pointed out that the new arrangement differed from earlier schemes because it separated small retailers from larger commercial enterprises. Traders, he said, could either remain within the existing tax regime or choose the simplified option.
Aurangzeb called on the business community to benefit from the new facility, reiterating that the government wanted to expand the tax net through ease and cooperation instead of complicated requirements.
He further said the government had begun consultations with stakeholders on a broader scale to strengthen tax compliance across the country and find practical solutions to the problems confronting traders and businesses.
Bilal Azhar Kayani said the retailer scheme had been prepared in consultation with representatives of the trading community and had now entered the implementation phase with the launch of the application.
He said the government had unveiled the scheme on June 5 and subsequently worked on developing the app and other facilities needed by retailers. The consultation process, he added, remained underway for over three months before the final structure was agreed upon.
Kayani said trader representatives, including Ajmal Baloch and Kashif Chaudhary, had participated in discussions aimed at examining the flaws of previous tax schemes and developing a system that would be simpler and more practical for small businesses.
The minister said the government’s intention was to make tax filing easier for shopkeepers while bringing more contributors into the national revenue system. He described the arrangement as a “win-win” model because it would allow the government to improve revenue collection without placing an excessive compliance burden on small retailers.
He also announced an incentive for traders joining the initiative. Those who registered by the tax return filing deadline would be provided with a security-featured registration plate. According to Kayani, the plate would be durable and suitable for long-term use. Traders registering after the deadline would also be eligible for the plate, while its expected cost would remain below Rs1,500.
Kayani said the introduction of the retailer application was an important development in the government’s efforts to establish a stronger culture of tax compliance. By simplifying the process and improving accessibility and transparency, he said, the scheme would assist small businesses while contributing to the government’s objective of broadening the tax base.
FBR Chairman Rashid Mahmood Langrial said the application had been developed with small retailers in mind and was designed to make tax payment easier for shopkeepers.
He said registered retailers would receive a bar-coded plate carrying their relevant taxpayer information. Langrial added that tax officials would not be permitted to enter the premises of registered retailers for investigation purposes.
Representatives of the traders, Ajmal Baloch and Kashif Chaudhary, welcomed the FBR initiative and termed the retailer scheme and its application favourable for the business community. They also asked the finance minister to adopt similar standards of transparency and facilitation in other government institutions.
They said traders had been demanding such a mechanism for the last 27 years and maintained that the newly introduced scheme reflected their requirements. According to them, the system would enable shopkeepers to file their tax returns without facing unnecessary obstacles.
The trader representatives called on the government to maintain the initiative and expressed their commitment to ensuring that traders throughout the country fulfil their tax responsibilities by submitting their returns.