Govt launches Retailer Scheme App to bring millions into tax net

The government formally launched the Retailer Scheme App on Wednesday, aiming to make it easier for shopkeepers to enter the tax system, Business Recorder reported. Finance Minister Muhammad Aurangzeb unveiled it at a press conference in Islamabad alongside Minister of State for Finance Bilal Azhar Kayani, saying the app was developed through a consultative process.

Aurangzeb described the small shopkeeper tax scheme as simple and optional, noting that traders can stay in the regular regime if they prefer. He argued that the tax system cannot function while any segment of the economy remains outside the mainstream, and he urged traders to seize the opportunity.

Kayani said the app targets shopkeepers not yet registered for tax, letting small retailers file returns from a mobile phone, and exempts retailers from Point of Sale (POS) systems. Small retailers would face a minimum tax of Rs25,000 each year and the app will be offered in local languages by the first week of September. An earlier June measure set a fixed 1% tax on annual retail sales of up to Rs200 million.