Pakistan, June 13 -- The federal government has proposed a simplified fixed tax system for small traders and shopkeepers in the budget for fiscal year 2026-27. The initiative aims to make tax compliance easier for small businesses while reducing administrative hurdles that often discourage participation in the formal tax system. Officials believe the measure can help broaden the tax base without placing excessive burdens on small enterprises.

Presenting the budget, Finance Minister Muhammad Aurangzeb said the proposed framework is designed to create a more straightforward and transparent taxation process. He emphasized that the government wants to encourage voluntary tax compliance by introducing a system that is easier to understand and...