Shafaqna Pakistan: The federal government has proposed a simplified fixed tax regime for small traders and shopkeepers as part of the 2026–27 budget, aiming to broaden tax compliance while easing the burden of complex tax procedures.
Presenting the budget, Finance Minister Muhammad Aurangzeb said the initiative is designed to simplify the taxation framework, promote voluntary tax compliance, and reduce unnecessary regulatory hurdles for small businesses.
According to the budget documents, the proposed scheme has been introduced under Section 1993 of the Income Tax Ordinance.
Under the new framework, shopkeepers and small business owners with annual sales of up to Rs50 million would qualify for the fixed tax system, allowing them to benefit from a simplified method of taxation.
The government said the new system is designed to make taxation more predictable and accessible for small-scale businesses while improving overall tax documentation.
Source: Dunya News.
