The government formally launched its Retailer Scheme App on Wednesday. Finance Minister Muhammad Aurangzeb announced the app at a press conference in Islamabad. Minister of State for Finance Bilal Azhar Kayani joined him. Aurangzeb said the app was built through a consultative process with input from stakeholders.
New App Lets Shopkeepers File Taxes Directly From Their Phones
Key Highlights
- Government launches Retailer Scheme App for small shopkeepers
- Scheme remains optional; retailers can stay in the regular tax regime instead
- Small retailers pay a minimum tax of Rs25,000 annually
- App will be available in local languages by the first week of September
- Scheme builds on a fixed 1 percent tax plan introduced in June
The federal government has officially launched a dedicated Retailer Scheme App to make tax registration and return filing easier for small shopkeepers and bring millions of traders into the formal tax system.
Minister of State for Finance Bilal Azhar Kayani announced the launch… pic.twitter.com/9TDHMqSNAC
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A Simpler, Optional Path Into the Tax System
Aurangzeb said the country’s tax system cannot function if entire segments of the economy stay outside it. He said the government cannot afford to let that continue. He stressed that the scheme is not mandatory. Small retailers can choose to stay in the regular tax regime if they prefer. He said several changes were made to the new scheme, and a clear line has been drawn between small retailers and other categories of businesses.
Simplifying the tax system remains a top priority for the government, Aurangzeb said. He asked shopkeepers directly to make use of the opportunity now available to them.
How the App Works for Shopkeepers
Kayani explained that the app is aimed particularly at shopkeepers who aren’t currently registered as taxpayers. Through the app, shopkeepers can become filers and submit their tax returns directly from a mobile phone. Retailers who join the scheme will be exempt from Point of Sale system requirements. In exchange, they will pay a minimum annual tax of Rs25,000.
The app is currently available, and a local-language version is expected by the first week of September. Kayani said the goal is straightforward: if the scheme works, it could bring millions of traders into the tax net. That, in turn, would ease the tax burden currently carried mostly by salaried workers.
Part of a Broader Push That Started in June
The app builds on a fixed-tax scheme introduced by the government back in June. Under that scheme, small shopkeepers with annual turnover upto Rs200 million pay a flat tax of 1 percent on their turnover. Eligible retailers can sign up by completing a simple, one-page declaration form. Upon enrolment, they are excused from POS requirements, routine audits, and withholding agent responsibilities. Any withholding tax deducted via utility bills or other means can be offset against what they owe. The app now gives shopkeepers a direct, mobile way to get into that system.
