Small traders and business leaders have urged authorities to focus on clarity, affordability and smooth execution to ensure wider acceptance and compliance of recently announced fix tax scheme.
The scheme proposes a one percent tax on retailers with an annual turnover of up to Rs. 200 million, alongside simplified registration and return filing procedures aimed at expanding the tax base. President Rawalpindi Chamber of Commerce and Industry (RCCI) Usman Shaukat said the initiative reflects meaningful engagement with stakeholders, but warned that its effectiveness would depend on transparent implementation and consistent policy application.
Talking to APP, he said the simplified one-page return form, available in Urdu and regional languages, is a welcome step that could reduce procedural barriers for small traders. However, he stressed the need for proper guidance and technical support, particularly for digital submissions.
He noted that allowing adjustment of withholding tax could provide relief, provided the mechanism is implemented without complications. He also called for awareness campaigns to inform traders about requirements, including the Rs. 25,000 minimum cash deposit at the time of filing returns. Usman said the introduction of a tax registration plate for compliant retailers could help minimise unnecessary inspections and improve trust between traders and tax authorities.
Meanwhile, President Central Traders Association Rawalpindi Malik Shahid Ghafoor Paracha said the policy appears promising but cautioned that past initiatives had faced setbacks due to changes during implementation.
He said traders are willing to contribute to the national exchequer, provided the system remains simple, predictable and free from excessive bureaucratic interference. He urged authorities to avoid adding new conditions that could discourage participation.
Paracha added that ease of registration and multilingual forms could help bring more traders into the formal economy, particularly in smaller markets. Senior trader leader Sharjil Mir also supported the consultative approach adopted by the government.
Sharjil suggested revisiting the tax rate and reviewing the Rs. 25,000.0 filing-related requirement, terming it an added financial burden for smaller businesses. He also proposed the development of a dedicated mobile application to facilitate easy tax filing and payments, saying that user-friendly digital solutions could significantly improve compliance. Traders across markets expressed cautious optimism, saying the scheme has the potential to broaden the tax net if implemented fairly, consistently and without undue complexity.