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GOVT UNVEILS FIXED TAX REGIME FOR SMALL TRADERS, SHOPKEEPERS AHEAD OF BUDGET Saturday, 6 June, 2026 | 20 ZilHaj, 1447
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FINANCE MINISTER SAYS SCHEME APPLIES TO BUSINESSES WITH ANNUAL TURNOVER UP TO RS200M
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SAYS ‘FLAT 1PC TAX RATE’ INTRODUCED WITH SIMPLIFIED COMPLIANCE MECHANISM FOR SMALL TRADERS
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ISLAMABAD
KIANI SAYS TRADERS OFFERED OPTIONAL REGIME WITH POS AND AUDIT EXEMPTIONS
FBR MEMBER SAYS 3.5 MILLION TRADERS EXPECTED TO FALL UNDER NEW SCHEME
SALEEM JADOON
HE government on Friday unveiled a new taxation initiative titled the “Fixed Tax Asaan Scheme” for small traders and shopkeepers with an annual turnover of up to Rs200 million, claiming the simplified regime has been finalised “in consultation with trader bodies” in response to “their longstanding demand for an easier tax compliance mechanism.” The announcement was made in a video message by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and Federal Board of Revenue (FBR) Member Hamid Attique Sarwar. The new scheme comes in the wake of the apparent failure of the Tajir Dost Scheme introduced last year, which struggled to broaden the tax base. Finance Minister Aurangzeb said under the scheme, tax payable would be adjustable against withholding tax already paid, provided a minimum of Rs25,000 is deposited at the time of filing the tax return. Otherwise, the standard tax rate of 1 per cent would apply. He said the scheme would be optional, allowing traders to either join it or continue under the normal tax regime. Those opting for the fixed tax system would be issued a special plaque for display at their business premises, carrying details including name, registration num-
ber and National Tax Number (NTN), along with a QR code. “A tax inspector would be able to scan the QR code on the plaque and, if it is found to be genuine, would not be permitted to enter the premises for tax-related inspections,” the minister added. Scheme to be accessible in local languages; POS and audit exemptions Minister of State for Finance Bilal Azhar Kiani, who led negotiations with trader bodies, said the scheme would apply to businesses with annual turnover of up to Rs200 million. A flat tax rate of 1 per cent would be payable through a simplified form available in all local languages. He said those opting for the scheme would be exempt from Point-of-Sale (POS) requirements and tax audits. In case of disputes, matters would be re-
AJK declares JAAC as ‘proscribed organisation’ ahead of planned strike MUZAFFARABAD
STAFF CORRESPONDENT
The Azad Jammu and Kashmir (AJK) government on Friday declared the Joint Awami Action Committee (JAAC) a proscribed organisation and placed it in the First Schedule of the Azad Jammu and Kashmir AntiTerrorism Act, 2014. According to a notification issued by the Home Department, the government alleged that the organisation had engaged in activities detrimental to the peace and security of the state. The notification stated that the group was involved in creating unrest, intimidating the public, promoting hatred, and generating insecurity within society. The notification further said that the President of AJK had approved the inclusion of the Jammu Kashmir Joint Awami Action Committee (JK-JAAC), also known as the Joint Awami Action Committee (JAAC) and Awami Action Committee (AAC), in the list of proscribed organisations under the Anti-Terrorism Act. The move comes amid escalating tensions over the group's call for a region-wide wheel-jam strike on June 9, coinciding with the commencement of the nomination process for the July 27 AJK general elections. Authorities have criticised the organisation for refusing to engage in dialogue through established institutional mechanisms and have accused it of pursuing actions that could disrupt the electoral process. At the centre of the dispute is JAAC’s demand for the abolition of 12 reserved seats in the AJK Legislative Assembly allocated to refugees from Indian Illegally Occupied Jammu and Kashmir who settled in Pakistan following the partition of the subcontinent in 1947. The group argues that these seats are frequently used by mainstream political parties to influence government formation in AJK. However, the AJK Legislative Assembly on Thursday strongly endorsed the continuation of the refugee seats and stressed that the electoral process should proceed according to schedule.
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solved in consultation with the relevant traders’ association. Both non-filers and existing filers would be eligible, provided their turnover had not exceeded Rs200 million in any of the preceding three years, and the minimum tax payable was higher than that paid in the previous year. He added that traders outside both the fixed tax scheme and the normal tax regime would face penalties of Rs10,000 per month for the first month, rising to Rs25,000 in the second month and Rs51,000 in the third month. Kiani said the scheme was designed after lessons learned from previous initiatives and “would be successful this time.” He added that kiosks and pushcart-based small traders would be excluded from the scheme. Scheme to cover 3.5 million traders
FBR Member Hamid Attique Sarwar said there are around 4.4 million traders in the country, of whom approximately 3.5 million would fall under the new scheme. Larger traders, classified as Tier-1 and mostly operating in the branded sector, estimated at between 50,000 and 100,000 businesses, would not be eligible. He said most traders under the scheme currently pay little or no tax, and even small contributions would significantly broaden the tax base without overburdening compliant taxpayers. He clarified that the initiative should not be termed an amnesty scheme. Officials said eligibility would require at least three years of business operations, a physical business premise, and engagement in non-specialised commercial activity. Small taxpayers already filing returns before 2025 could also join if they meet the criteria. Traders will be able to register through the FBR website, mobile applications, or tax practitioners, and will be required to maintain simplified records of sales, purchases, expenses and other transactions. Participants will also gain benefits such as Active Taxpayer List (ATL) status, reduced withholding tax rates, and improved financial credibility. The development comes ahead of the federal budget for FY2026-27, scheduled for June 10, which is expected to be prepared under the close supervision of the International Monetary Fund (IMF).
AJK general elections set for July 27 as schedule unveiled MUZAFFARABAD
STAFF REPORT
The Azad Jammu and Kashmir (AJK) Election Commission on Friday announced that general elections in the region will be held on July 27 and unveiled a detailed election schedule, formally setting in motion the electoral process ahead of the completion of the Legislative Assembly’s five-year constitutional term. Addressing a press conference, AJK Chief Election Commissioner retired Justice Ghulam Mustafa Mughal said the elections would be conducted under the supervision of the army, paramilitary and civil armed forces, while reaffirming the
commission’s commitment to ensuring a free, fair and transparent electoral exercise. “Let me reiterate that the elections will be free, fair and transparent. We will make every effort to ensure that voters can exercise their right to vote freely,” he said. The chief election commissioner was accompanied by constitutional member Syed Nazeerul Hassan Gillani, Secretary Raja Shakeel Khan and other election officials. Under the election schedule, nomination papers can be submitted to returning officers from June 9 until 4pm on June 19. Scrutiny of nomination papers will begin on June 20, when the list of eligible candidates will also be displayed.
Candidates will be allowed to file appeals against the acceptance or rejection of nomination papers from June 21 to June 24, while appellate authorities will hear such appeals on June 26 and 27 between 9am and 4pm. According to the notification, decisions on appeals will be announced between June 28 and June 29. Candidates will be able to withdraw their nomination papers until 2pm on June 30. The final list of contesting candidates will be published on July 1, while election symbols will be allotted on July 2. Polling will take place on July 27, with voting scheduled from 8am to 5pm.
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Scrapping 12 AJK LA seats meant to undermine electoral process: Kh Asif ISLAMABAD
STAFF CORRESPONDENT
Minister for Defence Khawaja Muhammad Asif has said that demands to abolish the 12 seats in the Kashmir Assembly reserved for Kashmiri voters residing in Pakistan are tantamount to an attempt to undermine and disrupt the electoral process. This demand, made ahead of the upcoming elections, is tantamount to sabotaging the electoral process, the defence minister wrote on his social media platform X. Democratic principles require
that those making this demand present it to the public on July 27 and allow the people to decide and shape their own representation. Only then can it be considered democratic; otherwise, it will be seen as blackmail. He said in Sialkot city and tehsil, there is one seat in the Azad Kashmir Assembly and two seats in the Pakistan National Assembly. The remaining Kashmir Assembly constituencies are spread across Pakistan. In Sialkot the majority of Kashmiri migrants are from Jammu, he said. He said in October
1947, these migrants settled in Sialkot city and tehsil after sacrificing over 200,000 lives. Modesty of hundreds of thousands of women was outraged and thousands of daughters were abducted. How can these migrants be deprived of their rightful representation, he questioned. For decades, these migrants have lived in extreme poverty, deprived of basic necessities of life. They have paid a very high price for freedom. Those seeking to have their opinions recognized should follow democratic means.
Naqvi reaffirms Pakistan’s commitment to SCO cooperation on security ISLAMABAD
STAFF REPORT
Interior Minister Mohsin Naqvi on Friday said Pakistan remains committed to the Shanghai spirit and urged Shanghai Cooperation Organisation member states to adopt a joint strategy against terrorism, organised crime, drug trafficking, cybercrime, and terror financing. He was speaking at a special meeting of the ministers of interior and public security of the SCO in Bishkek, Kyrgyzstan. Naqvi said the region was facing serious and complex security threats that were interconnected. He told delegates that criminal and terrorist networks were quickly adjusting to technological change and were using artificial intelligence, digital platforms, online networks, and cryptocurrency transactions to widen their operations. He stressed the need to modernise institutional coordination and improve intelligencesharing mechanisms across the region to respond to these threats. Naqvi said shared threats required shared solutions and called for stronger cooperation among SCO member states. He reaffirmed Pakistan’s commitment to the forum’s cooperative framework and its principles under the Shanghai spirit.
ECC meeting set before budget ISLAMABAD
STAFF REPORT
The Economic Coordination Committee has been called to meet over the weekend ahead of the federal budget, with a series of financial and development proposals involving billions of rupees expected to come up for consideration. The meeting is expected to take up requests for grants and supplementary allocations across a number of sectors, with decisions likely to influence fiscal and development priorities before the budget is unveiled. Among the key items on the agenda is a proposal for a grant of more than Rs7 billion under the Sustainable Development Goals programme. Officials said the committee is also expected to consider Rs528 million for the Pakistan Land Ports Authority and an additional Rs150 million for the National Counter Terrorism Authority. Securityrelated matters are also part of the agenda, including more than Rs410 million proposed for payments linked to the Reko Diq project and Rs690 million sought for security arrangements related to the Islamabad peace talks. Development and energy matters on agenda The session is also due to examine the transfer of development funds under the Karachi and Hyderabad package, along with proposals concerning the redistribution of special programme funds for Khyber Pakhtunkhwa. A separate proposal worth Rs1.3 billion for the upgradation of Pakistan Mint is also set to be reviewed. In the energy sector, the ECC is expected to consider a syndicated financing facility for Pakistan State Oil. Officials further said an agreement connected to an oil refinery upgrade project will also be placed before the committee. Supplementary grants and additional allocations for various ministries are also likely to be approved as the government moves to settle major fiscal and development decisions ahead of the forthcoming budget.
Govt cuts petrol price by Rs4 per litre, maintains diesel price ISLAMABAD
STAFF CORRESPONDENT
The federal government on Friday announced a further reduction in the price of petrol, lowering it by Rs4 per litre while keeping the price of high-speed diesel (HSD) unchanged for the next fortnight. According to a notification issued by the Ministry of Energy’s Petroleum Division, the price of petrol has been reduced from Rs381.78 to Rs377.78 per litre. However, the price of high-speed diesel has been maintained at Rs380.78 per litre. The latest adjustment marks the fourth consecutive reduction in petroleum prices, providing some relief to consumers after months of significant increases linked to regional instability and fluctuations in global oil markets. Last week, the government reduced the prices of both petrol and diesel by Rs22 per litre, describing the move as an “Eid gift” for the public. The latest reduction continues that trend as authorities seek to ease the financial burden on consumers.
Pakistan rejects India’s comments on Gilgit-Baltistan elections as ‘baseless’ ISLAMABAD
STAFF REPORT
Pakistan on Friday rejected India’s objections to the upcoming general elections in Gilgit-Baltistan, describing New Delhi’s remarks as baseless and accusing it of trying to blur facts through propaganda. General elections in Gilgit-Baltistan are due to be held on Sunday, June 7, after being delayed for four months because of severe winter conditions. In the run-up to the vote, the Pakistan Peoples Party and other political parties have held rallies across the region and intensified their campaigns to win support. In a statement, Foreign Office spokesperson Tahir Andarabi said India continued to
occupy the internationally recognised disputed territory of Jammu and Kashmir illegally and accused New Delhi of spreading false narratives. The statement said Pakistan rejected India’s latest remarks outright. Earlier on Friday, India’s foreign ministry objected to the planned elections in Gilgit-Baltistan and claimed that the entire Union Territories of Jammu and Kashmir and Ladakh, including what it called GilgitBaltistan, were integral parts of India. Pakistan reiterates position on Kashmir dispute Restating Islamabad’s position, the Foreign Office said the Jammu and Kashmir dispute remained the oldest unresolved issue on the United Nations Security Council agenda and said the matter stemmed from what it
called India’s forcible and unlawful occupation of the state in 1947. The Foreign Office said a just and lasting resolution required implementation of relevant UN Security Council resolutions so that the people of Kashmir could exercise what it described as their inalienable right to self-determination through a free and impartial plebiscite under UN auspices. The statement also said India’s assertions regarding Gilgit-Baltistan could not shift attention away from what Pakistan described as grave and systematic human rights violations in India-occupied Kashmir. It said Indian forces operated with impunity under draconian laws and characterised the situation as state terrorism against unarmed Kashmiris. Pakistan also called on India to vacate all
occupied territories, reverse all illegal and unilateral measures taken in occupied Kashmir since August 5, 2019, and repeal what it termed draconian laws. It further urged New Delhi to allow neutral observers, international human rights and humanitarian organisations, and international media access to assess conditions on the ground. The Foreign Office statement added: India must also enable the Kashmiri people to exercise their right to self-determination in accordance with the relevant UN Security Council resolutions, Earlier this year, Ghulam Abbas, a minister in the region’s caretaker setup, also dismissed what he called Indian propaganda. Speaking at the Meet the Press programme at the National Press Club, he said the people
of Gilgit-Baltistan had always remained loyal to Pakistan and had consistently sought formal inclusion in the country. According to details shared at the event, Gilgit-Baltistan separated from India without major violence, and the people of the region voluntarily raised the Pakistani flag. Abbas said Indian claims that the people of GilgitBaltistan were protesting against Pakistan in order to join India had no credibility in the region or internationally. He said: The Indian propaganda and the statements of Narendra Modi claiming that the people of GB are protesting against Pakistan to join India have become a laughing stock in the region, Abbas added that this narrative was not being accepted by the international community.