ISLAMABAD

The government has launched a new mobile application for retailers alongside a simplified and optional tax scheme for small shopkeepers, in a move aimed at bringing more businesses into the formal tax system while making compliance easier for traders.

Federal Finance Minister Muhammad Aurangzeb unveiled the initiative in Islamabad, saying shopkeepers would not be forced to join the new scheme and could continue under the existing tax regime if they chose to do so.

The government has revised the scheme after consultations with traders, drawing a distinction between small shopkeepers and larger businesses to prevent smaller retailers from facing what officials described as an unfair tax burden.

Aurangzeb urged retailers to register under the new system and benefit from the simplified process, while warning that businesses that remain outside the tax framework could face action in the future.

The finance minister said the government’s objective was to bring every category of business into the national tax net, while using digital technology to make the process simpler and more efficient.

Minister of State for Finance Bilal Azhar Kayani said the scheme had been finalised after extensive consultations with the trader community and was now ready for implementation.

The launch comes as the government seeks to widen Pakistan’s narrow tax base and increase documentation of economic activity. The new retailer application is expected to provide a more digital route for small traders to interact with the tax system.

Officials said the simplified approach was designed to encourage voluntary participation while maintaining the government’s broader goal of expanding the tax net across the economy.