Government launches trader-friendly scheme to boost tax compliance

ISLAMABAD: Finance Minister Muhammad Aurangzeb announced a new trader-friendly scheme aimed at bolstering tax compliance among small traders and improving revenue collection on Thursday.

The unveiling took place during a high-level meeting held at the Federal Board of Revenue (FBR) headquarters, chaired by Minister Aurangzeb.

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The meeting focused on fostering a business-friendly environment, strengthening IT projects, combating tax fraud, and curbing fake invoice circulation. Minister Aurangzeb stated that the government was committed to expanding the tax base.

Efforts were directed towards establishing efficient mechanisms for recovering stolen sales tax, crucial for maintaining tax system integrity and ensuring fair contributions from stakeholders. Additionally, discussions revolved around digitizing FBR processes to enhance revenue collection transparency.

The trader-friendly scheme aims to incentivise small traders to formalise their businesses and comply with tax regulations. By simplifying tax procedures and offering incentives, the scheme seeks to encourage greater tax participation while fostering economic growth.

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Muhammad Aurangzeb affirmed the government’s understanding of challenges faced by small traders, asserting that the scheme aims to alleviate tax burdens while strengthening revenue collection efforts.