Finance Minister Muhammad Aurangzeb has reviewed progress on the Retailers’ Tax Scheme amid a lower-than-expected response from traders, with a focus on facilitating registration, improving compliance and expanding Pakistan’s tax base.
State Minister for Finance Bilal Azhar and Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial attended the meeting, according to an official announcement.
The meeting assessed implementation progress and discussed measures to accelerate compliance with the scheme. Participants also reviewed registration figures, the filing of tax returns, participation by existing taxpayers and applicable tax payment requirements.
Aurangzeb said the scheme provides retailers with a simplified mechanism to enter the formal tax system and contribute to the country’s economic development.
He stressed the need to evaluate implementation challenges and address operational issues to improve the scheme’s effectiveness.
The meeting also discussed efforts to identify and map unregistered retailers using available data and relevant identification records. The FBR briefed participants on data validation and the importance of ensuring that registration records accurately reflect the businesses concerned.
The finance minister called for a balanced approach that combines taxpayer facilitation with targeted measures supported by proper documentation.
Emphasising the scheme’s long-term objectives, Aurangzeb said the Retailers’ Tax Scheme should not be viewed as a temporary arrangement limited to 2026.
Instead, it is intended to provide small retailers with a simplified and sustainable route into the formal tax system, encouraging them to remain compliant in the years ahead.
The government aims to broaden the tax base by bringing more retailers into the documented economy while addressing implementation challenges and improving participation.
