Govt, traders move towards consensus on fixed tax scheme for retailers

The federal government and traders are moving towards a consensus on a proposed simplified fixed tax scheme for retailers, which is expected to be included in the Finance Bill 2026-27 for businesses with an annual turnover of up to ₨200 million, The News reported, citig official sources. 

The proposed scheme has been discussed with small traders and their representative bodies ahead of the upcoming federal budget, scheduled to be presented in parliament by June 5, 2026.

Under the proposal, retailers with a turnover of up to ₨200 million would pay a fixed 1% tax on turnover, subject to a minimum payment of ₨25,000.

Officials said taxpayers opting for the scheme would generally remain exempt from audits unless the Federal Board of Revenue detects major discrepancies in declared income or assets.

The FBR would also issue QR code certificates to retailers registered under the scheme.

Sources said retailers choosing to remain outside either the normal tax regime or the proposed fixed tax system could face penalties under amendments expected in the Finance Bill 2026-27.

The government is expected to formally announce the scheme after Eid al-Azha.