Pakistan’s government is considering a new tax proposal under the “Fixed Tax Asaan Scheme” that would require traders to pay a minimum of Rs. 25,000 when submitting their tax returns.
The proposal is part of broader efforts to improve tax collection and encourage greater participation in the formal economy.
According to officials, the minimum payment will apply even if a trader’s calculated tax liability under the scheme is less than Rs. 25,000.
The government believes this requirement will ensure that all traders participating in the scheme make a basic contribution to national revenue.
Authorities explained that the scheme is designed to simplify the tax filing process while creating a more predictable taxation system for small businesses and traders. The proposed framework aims to reduce paperwork and make compliance easier.
Officials also stated that any withholding tax already paid by traders can be adjusted against their overall tax liability. This adjustment is intended to provide relief to taxpayers who have already contributed through different tax deductions during the year.
However, the government has clarified that traders must first meet the minimum payment requirement of Rs. 25,000. If they fail to do so, the adjustment facility will not be available, and the standard fixed tax rate of 1% will apply without any deductions.
Business groups are closely reviewing the proposal to assess its impact on traders, especially small businesses.
Some stakeholders believe the simplified system could improve compliance, while others are concerned about the burden on traders with lower incomes.
The proposal is expected to be discussed further as part of the upcoming budget measures and broader tax reform efforts.