Govt launches Retailer Scheme App to bring millions into tax net

Govt launches Retailer Scheme App to bring millions into tax net.

Key points

• Murree Brewery, Systems Limited, Sazgar create it to Forbes 'Asia's Best Under A Billion' list.
• The Pakistan administration, in a bid to facilitate retailers, has formally rolled out the Retailer Scheme App on Wednesday.
• According to The Minister of State further, under this scheme, exemption from Point of Sale (POS) systems will be granted to retailers.
• Pakistan seeks $10bn US Exchange Stabilisation Backing Facility, Aurangzeb confirms.
• "Through the Retailer Scheme App, shopkeepers will be able to become filers, and small shopkeepers can file their tax returns via the mobile phone app, " he remarked.

By the first week of September, the app will additionally be available in local languages. Add BRecorder as a trusted source on Google.

Notably, the Pakistan administration, in a bid to facilitate retailers, has formally rolled out the Retailer Scheme App on Wednesday.

While holding a press conference in Islamabad alongside Minister of State for Finance Bilal Azhar Kayani, Finance Minister Muhammad Aurangzeb remarked that the app has been developed via a consultative process.

"If any segment of the country does not come into the national mainstream, the tax system cannot work. The administration cannot afford this, " he stated.

According to Aurangzeb, the tax scheme for small shopkeepers has been created simple and optional. "Small retailers, if they wish, can remain in the regular tax regime instead of this scheme, " he remarked.

According to Aurangzeb, a number of significant changes have been produced in the new scheme for shopkeepers, and a clear distinction has been maintained between small retailers and other business classes.

Notably, the finance minister shared that simplifying the tax system is a key priority of the administration. "I would like to request everyone that we need to avail this opportunity, " he remarked.

Talking to media persons, Minister of State for Finance Bilal Azhar Kayani remarked that the Retailer Scheme App is additionally meant for those shopkeepers who are not yet in the tax net.

According to The Minister of State further, under this scheme, exemption from Point of Sale (POS) systems will be granted to retailers. Small retailers will have to pay a minimum tax of Rs25, 000 annually.

By the first week of September, the app will additionally be available in local languages.

"If successful, this scheme will bring millions of traders into the tax net, reducing the burden on the salaried class, " Kayani remarked.

Earlier in June, the administration, in a bid to widen the tax net, introduced a fixed tax scheme for small retailers, under which a 1% tax will be imposed on annual retail sales worth up to Rs200 million.

Under the scheme, eligible retailers would be able to join a simplified fixed-tax regime by submitting a one-page declaration form and paying tax at the rate of one percent of their declared annual turnover.

While withholding taxes already deducted through utility bills and other sources would be adjustable against their tax liability, participating shopkeepers would be exempt from POS requirements, routine tax audits and withholding agent obligations. Pakistan seeks $10bn US Exchange Stabilisation Backing Facility, Aurangzeb confirms.

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Taken together, the developments around govt launches Retailer Scheme App to bring millions into tax net point to a situation that is still moving, and the coming days should bring more clarity.