Pakistan to impose 1% fixed tax to bring 3-4 million shopkeepers in tax net
Pakistan is introducing a 1% fixed tax on small shopkeepers with annual sales under Rs 200 million to expand its narrow tax base. The policy, developed in consultation with trade unions, aims to bring millions of informal businesses into the formal tax system.
Why it matters
Increasing the tax-to-GDP ratio is a critical requirement for Pakistan's economic stability and compliance with IMF-backed reform programs.
ISLAMABAD: Pakistan’s government will impose a 1 percent fixed tax on the annual retail sales of Rs200 million [$719,000] or less of shopkeepers across the country, State Minister for Finance Bilal Azhar Kiani said on Friday, saying the move intends to bring an estimated 3-4 million shopkeepers under the tax net.
Reports on government policy and economic reform with neutral framing.
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