SM Tanveer Calls Shopkeeper Tax Scheme a Game Changer

Senior business leader and former president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), SM Tanveer, has strongly endorsed the federal government’s newly introduced fixed tax scheme for shopkeepers, describing it as a positive and significant policy step for Pakistan’s retail sector.

In a statement, Tanveer called the initiative an important move toward expanding the country’s national tax base, saying the scheme represents a meaningful shift in how Pakistan approaches taxation of small and medium traders.

Under the scheme, shopkeepers and retailers with an annual turnover of PKR 200 million or less will be required to pay a fixed income tax rate of one percent — a simplified and predictable structure designed to bring a large segment of the informal retail economy into the formal tax net without placing an excessive burden on small traders.

Tanveer also welcomed a key provision of the scheme that allows shopkeepers to claim withholding tax deductions, describing it as a trader-friendly measure that acknowledges the financial realities of running a small business in Pakistan’s current economic environment.

He noted that the scheme was developed through close consultation with trade and shopkeeper organisations — a process he credited for the policy’s practical design. Describing it as a “game changer” for the retail sector, Tanveer said the collaborative approach between the government and traders had produced a framework that is both workable and fair.

SM Tanveer extended formal congratulations to Federal Finance Minister Muhammad Aurangzeb and Minister of State for Finance and Revenue Bilal Azhar Kayani for introducing the initiative, praising their role in advancing the country’s tax reform agenda. He also congratulated Ajmal Baloch for conducting successful negotiations that helped bring the scheme to fruition.

The fixed tax scheme for retailers is part of a broader government effort to document Pakistan’s large informal economy and increase direct tax revenues without triggering resistance from the country’s powerful trader community. By offering a simple, low, and predictable tax rate, the government aims to incentivise voluntary compliance among hundreds of thousands of shopkeepers who have historically remained outside the formal tax system.