Govt launches Asaan Scheme for traders and shopkeepers - Who can join it?

Fixed Tax Asaan Scheme for traders and shopkeepers launched by govt with 1 percent rate. File photo

| Published June, 6 2026 | Updated

(Web Desk): The government has launched Asaan Scheme for traders and shopkeepers with fixed tax rate to simplify taxation for small businesses.

The scheme targets traders with annual turnover up to Rs200,000,000.

Scheme background and policy shift

The government introduced the Fixed Tax Asaan Scheme after the earlier Tajir Dost Scheme failed to expand the tax net. Officials said this new system was designed after consultations with trader bodies.

The announcement was made through a recorded message by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and FBR Member Hamid Attique Sarwar.

Who can join the scheme

The scheme will apply to businesses with annual turnover up to Rs200,000,000. Traders can choose to join it voluntarily or remain in the normal tax system.

Officials said even non-filers and existing filers can join if they meet conditions. However, turnover must not have exceeded Rs200,000,000 in the past three years.

Tax rate and payment system

Under the scheme, traders will pay a fixed tax rate of 1 percent. The payment will be made through a simple form available in local languages.

Finance Minister said the tax will be adjustable against withholding tax already paid. A minimum payment of Rs25,000 will be required at filing time.

Digital protection and QR code system

Participants will receive a special plaque for their business premises. It will include NTN details, name, and a QR code.

Officials said tax inspectors scanning a valid QR code will not be allowed to enter the shop for inspection. This step aims to reduce harassment concerns among traders.

Exemptions and relief measures

Kiani said scheme members will be exempt from POS requirements and audits. Any disputes will be resolved with trader associations.

Kiosks and pushcart vendors will not be included in the scheme. Small informal traders are kept outside its scope.

Penalties for non-compliance

Traders who do not join either system will face monthly fines. The penalty starts at Rs10,000 and rises to Rs51,000 over three months.

Officials warned this step is meant to push traders into the formal tax system. It is not meant as an amnesty scheme.

Coverage and impact

Around 4.4 million traders exist in the country, and nearly 3.5 million are expected to fall under this scheme. Large Tier-1 branded businesses will remain excluded.

Officials said most small traders currently pay little or no tax. Even small contributions will strengthen revenue collection.

Registration and benefits

Traders can register through the FBR website, mobile apps, or tax consultants. They will need to maintain simple records of business activity.

Benefits include Active Taxpayer List status, lower withholding taxes, and improved financial credibility. This is expected to encourage compliance.

Budget timing and outlook

The scheme comes ahead of the federal budget for FY2026-27. The budget will be presented on June 10 under IMF monitoring.

Officials believe this reform could reshape small business taxation. However, its success will depend on trader participation and enforcement strength.

Also read: Punjab unveils 20,000 green tractors scheme to modernize agriculture

This scheme tries to bring small traders into the tax system. It offers simplicity but also adds pressure through penalties.

The QR code idea is new and aims to reduce inspections. However, its success depends on trust between traders and authorities. If properly implemented, it could widen the tax base. But resistance from traders may still challenge its effectiveness.