Govt launches mobile app for small traders’ tax scheme

The government on Wednesday launched a mobile application for its Fixed Tax Asaan Scheme, enabling small traders and shopkeepers to file their tax returns through the app.

The government had earlier introduced the scheme before presenting the federal budget for traders having an annual turnover of up to Rs200 million.

Addressing a press conference along with Finance Minister Muhammad Aurangzeb and trader representatives, Minister of State for Finance Bilal Azhar Kayani said the launch of the scheme represented the “practical start of a project which the government has been working on during the past few months”.

Congratulating the trader community on the successful launch of the application, he said it was developed through the guidance and consultation of the community.

Recalling that the tax scheme for small traders was announced before the budget on June 5, the minister said after the announcement, the government team started working on developing the application and the plates to be issued to the shopkeepers.

According to the minister, the government team throughout the development of the application kept trader representatives Ajmal Baloch and Kashif Chaudhry, along with their associates, in the loop.

“Initially, there were a few questions which we addressed: Why did the tax schemes in the past fail? And what was needed for the success of the current scheme for making it easier for traders to be tax filers along with helping the achievement of two objectives of expansion of the tax base and tax filer population?” Kayani said.

Saying the scheme had been devised for mutual benefit, he said the government would get more tax revenues while the traders would have an easy-to-deal-with system with FBR.

“This is a trader-led scheme and it will succeed with trader-led implementation,” he said.

The government has launched the “Asaan Tajir” scheme and app for traders with annual sales of up to Rs200 million, whether registered taxpayers or not. The Urdu-language app allows users to register, generate a PSID, pay taxes and receive confirmation of their filer status and scheme benefits. Registered traders will also receive a digital protection plate, with the physical plate available within two weeks.

Under the scheme, traders will generally pay 1% of declared sales, after withholding tax, with a minimum tax of Rs25,000.

Existing filers can also join, subject to certain conditions. Participants will not be required to install POS machines or act as withholding agents. The app will soon be available in English and regional languages including Pashto, Balochi and Sindhi.

Finance Minister Muhammad Aurangzeb said the scheme was designed in consultation with traders to create a simpler, harassment-free tax system, particularly for small businesses.

He urged traders to use the new option, saying the government had moved away from previous “one-size-fits-all” approaches by distinguishing small shopkeepers from larger retail enterprises.