Asaan Tax App Launched for Retailers With 1% Tax on Sales

KARACHI: The Asaan Tax mobile app for retailers and shopkeepers is now operational under a simplified tax scheme offering a 1% levy on declared annual sales, State Minister for Finance Bilal Azhar Kayani said.

Speaking during a visit to the Karachi Chamber of Commerce and Industry (KCCI), Kayani said the Asaan Tax Scheme was introduced following consultations with traders and is designed to simplify tax compliance while bringing more businesses into the formal tax system.

He said the Federal Board of Revenue (FBR) has appointed focal persons in different parts of the country to coordinate with representatives of the business community and facilitate implementation of the scheme.

Retailers to Pay 1% Tax on Declared Sales

Under the scheme, participating shopkeepers will pay tax equivalent to 1% of their declared annual sales, according to the minister.

Kayani said taxes already deducted from participating retailers through utility bills or other applicable channels would be adjusted against their tax liability.

The filing process has also been simplified, with the tax form prepared in plain Urdu and made available for online submission. The measure is intended to make registration and filing easier for small retailers and shopkeepers.

Registered Retailers to Receive FBR Green Plate

Retailers registered under the Asaan Tax Scheme will receive a green registration plate from the FBR to display outside their shops, Kayani said.

According to the minister, FBR officials will not be permitted to enter shops displaying the registration plate for routine questioning.

He added that businesses enrolled in the scheme would generally not be subject to routine audits.

No POS Machine or Withholding Agent Requirement

Kayani said retailers joining the scheme would not be required to install point-of-sale (POS) machines.

Participating shopkeepers would also not be required to act as withholding agents, reducing compliance requirements for businesses covered by the scheme.

The measures are aimed at making tax registration and filing more straightforward for retailers while encouraging greater participation in the formal tax system.

FBR Officials to Spend One Week a Month in Karachi

Kayani said Prime Minister Shehbaz Sharif has directed senior FBR officials to spend one week every month in Karachi to address issues raised by the business community.

The initiative began in August and will continue in the coming months, he said.

The government expects the combination of digital filing, simplified documentation and reduced compliance requirements to make the tax system more accessible to retailers while helping broaden the tax base.