Summary Pakistan proposes a fixed tax system for small traders with sales up to Rs50 million to simplify compliance and taxation.
ISLAMABAD (Dunya News) - Pakistan's government has proposed introducing a simplified fixed tax system for small traders and shopkeepers as part of the federal budget 2026-27.
Presenting the budget, Finance Minister Muhammad Aurangzeb said the initiative aims to simplify the tax structure, encourage voluntary compliance, and reduce unnecessary regulatory complexities for small businesses.
According to budget documents, the proposed scheme has been introduced under Section 1993 of the Income Tax Ordinance.
Under the plan, shopkeepers and small business owners with annual sales of up to Rs50 million would be eligible to benefit from the fixed tax regime.
The government said the new system is designed to make taxation more predictable and accessible for small-scale businesses while improving overall tax documentation.
