Overview
- The federal budget presented by Finance Minister Muhammad Aurangzeb in June 2026 included a formal proposal for a simplified fixed tax system targeting shopkeepers and small businesses.
- Budget documents place the scheme under Section 1993 of the Income Tax Ordinance and set eligibility at annual sales not exceeding Rs50 million.
- Officials say the regime would replace complex profit calculations with predictable, standardized liabilities to lower compliance costs and encourage voluntary registration.
- Representative trader groups publicly welcomed the proposal and the budget’s exemption from super tax, saying it would ease daily cashflow pressures and make tax payments more predictable for small shops.
- The measure remains unapproved and subject to the budget process, with implementation requiring detailed secondary rules, new registration steps for traders and expanded capacity at revenue authorities before it can take effect.