Govt launches ‘retailer app’ to expand tax net, simplify scheme for small traders

ISLAMABAD: The government on Wednesday launched a retailer app to bring small traders to the national tax net.

Finance Minister Muhammad Aurangzeb said that the government had simplified and made optional the tax scheme for small traders while digital technology would bring greater transparency to the economy.

Addressing a press conference in Islamabad alongside Minister of State for Finance Bilal Azhar Kayani, Aurangzeb said that the government was strengthening the consultation process to improve the budget scheme and ensure greater participation of parliament and relevant stakeholders in budget-making and tax policy formulation.

He urged traders and shopkeepers to join the new scheme and benefit from its incentives, warning that action would be taken in future against those who chose not to avail themselves of the scheme.

“The country cannot function by ignoring any particular segment of society,” the finance minister said, stressing that the government had a responsibility to provide an easier and more efficient system to a population of around 250 to 260 million.

Aurangzeb said that the government’s objective was to bring every segment of the business community into the national tax net and ensure broader participation in the tax system.

He said that the retailer app was aimed at expanding the tax base through technology and making the tax system more effective and transparent.

The minister also assured traders that they would not be harassed under the new system.

Retailer app to facilitate tax registration

Bilal Azhar Kayani said that the new scheme had been prepared after consultations with the business community and was aimed at broadening the country’s tax base.

He said that the retailer app would enable shopkeepers to become filers and was also available to those who were currently outside the tax net.

The app will be available for download through the Google Play Store, while local-language versions are expected to be made available by the first week of September.

Kayani said that a shop displaying a green plate would not be visited by an FBR official.

He said that the new trader scheme was available to shopkeepers who had not previously been part of the tax net.

According to the minister, shopkeepers with annual sales of up to Rs200 million can benefit from the scheme.

PSID to be issued during registration

Kayani said that registered shopkeepers would be issued a Payment Slip Identification Number (PSID), which could be used to pay the applicable fee.

Once the fee was deposited, the shopkeeper would receive confirmation of enrolment in the scheme for one year.

The minister said the initiative was part of the government’s broader efforts to expand the tax base while making compliance easier for traders.

He said the use of digital technology would simplify interaction between taxpayers and the tax authorities and improve transparency in the system.

FBR seeks cooperation from traders

Federal Board of Revenue Chairman Rashid Langrial said that the retailer scheme had been introduced to facilitate the business community.

He said that the FBR and the trader community could work together to put the country on a path towards sustainable economic growth.

The launch of the retailer app comes as the government seeks to increase tax revenues by bringing previously undocumented businesses and traders into the formal tax system while reducing the compliance burden for smaller businesses.

The government has also emphasised consultation with traders and other stakeholders as part of its efforts to improve tax policy and expand the tax base.