ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb on Wednesday launched a retailer app, saying the government had simplified and made optional the tax scheme for small shopkeepers to encourage their inclusion in the formal tax system.
Addressing a press conference in Islamabad, the finance minister said the use of digital technology would bring greater transparency to the economy and make the tax system easier and more effective.
Aurangzeb said the government was strengthening consultation with stakeholders to improve the budgetary framework and ensure that policymaking reflected the needs of different sectors and segments of society.
He stressed that no segment of society could be ignored and said the government had a responsibility to provide a simpler and more efficient system for a country with a population of around 250 to 260 million.
The minister said the tax scheme for small retailers had been made simple and optional. Shopkeepers who did not wish to join the scheme could continue under the regular tax system, he added.
He said several changes had been introduced under the new scheme, including a clear distinction between small retailers and other categories of businesses.
Aurangzeb further said that government wanted to ensure that all sectors were treated fairly under the tax system and that no business group felt it was being subjected to a disproportionate tax burden.
The finance minister urged shopkeepers to enrol in the new scheme and benefit from its provisions. He warned that the government would take necessary measures in the future against those who chose not to benefit from the scheme.
He said the broader objective was to bring every segment of the business community into the national tax net and ensure wider participation in the tax system.
Aurangzeb also stressed the importance of cooperation from relevant stakeholders for the successful implementation of the scheme.
Minister of State for Finance Bilal Azhar Kayani congratulated the business community and said the new scheme had been developed with their consultation and input.
He said the scheme was finalised after discussions with traders and had formally entered the implementation phase on Wednesday.
Kayani said the scheme was initially announced on June 5 at an event chaired by Finance Minister Aurangzeb. Preparations for its implementation began following the presentation of the federal budget, he added.
