Pakistan, June 5 -- The government has introduced a new fixed tax scheme for small traders as part of broader efforts to expand the tax base and improve compliance before the upcoming federal budget. Officials said the initiative aims to simplify taxation while encouraging more traders to formally register their businesses. Moreover, the scheme focuses on reducing complexity in the tax system for small-scale businesses. Authorities expect it to bring a major shift in documentation and revenue collection.

Under the new plan, traders with annual sales of up to Rs200 million will pay a fixed one percent tax on declared turnover. In addition, eligible traders must have reported similar sales levels during the previous three years to qualify ...