Govt weighs reprieve for 1.2m traders

The government is considering giving nearly 1.2 million digitally identified shopkeepers until January 31, 2027, to join or file under a fixed-tax scheme, The Express Tribune reported. Tax officials have put two choices before Finance Minister Muhammad Aurangzeb: allow a further three months with a surcharge of up to Rs85,000, or enforce the regular income tax law, which carries a minimum Rs175,000 penalty and possible audit.

The scheme, which charges 1% of sales and exempts participating retailers from audit, attracted only 222 new filers by the October 31 deadline. The government had aimed for at least one million retailers to join and expected to collect a minimum Rs50 billion in income tax. Officials say about 6,000 shopkeepers have been physically verified, while the finance minister’s team has sought the attorney general’s view before enforcement; the government has not settled the extension question.