Traders seek clarity on tax scheme execution

June 08, 2026 (MLN): Small traders and business leaders have expressed cautious optimism over the government's new fixed tax scheme for retailers, while urging authorities to ensure transparent implementation, consistent policy application and adequate support for digital compliance.

The scheme proposes a 1% tax on retailers with annual turnover of up to Rs200 million, along with simplified registration procedures and a one-page return form available in Urdu and regional languages.

Rawalpindi Chamber of Commerce and Industry (RCCI) President Usman Shaukat said the initiative reflected meaningful stakeholder engagement but warned its effectiveness would hinge on how consistently it was applied.

He welcomed the simplified return form as a step that could reduce procedural barriers, while stressing the need for proper guidance and technical support for digital submissions, according to APP.

He also called for awareness campaigns to inform traders about requirements, including the Rs25,000 minimum cash deposit at the time of filing, and said withholding tax adjustment could provide relief if implemented without complications.

He added that a tax registration plate for compliant retailers could help reduce unnecessary inspections and build trust with tax authorities.

Central Traders Association Rawalpindi President Malik Shahid Ghafoor Paracha said the policy appeared promising but cautioned that past schemes had faltered due to mid-course changes.

He said traders were willing to contribute to the national exchequer provided the system remained simple, predictable and free from excessive bureaucratic interference, urging authorities to avoid adding new conditions that could deter participation.

Senior trader leader Sharjil Mir, who also backed the consultative approach, proposed revisiting both the tax rate and the Rs25,000 filing requirement, calling the latter a financial burden for smaller businesses.

He also suggested developing a dedicated mobile application to facilitate easy tax filing and payments.

Traders across markets said the scheme had the potential to broaden the tax net if implemented fairly and consistently.

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