Pakistan's federal government launched the Fixed Tax Asaan Scheme on Friday, June 5, 2026, to bring small shopkeepers into the national tax net [1].

The move represents a critical effort to broaden the country's revenue stream by formalizing a massive sector of the economy that has historically remained outside the tax system. By simplifying the process for small businesses, the government aims to increase federal collections before the upcoming budget cycle.

The program is available nationwide for small traders and shopkeepers whose annual turnover does not exceed Rs200 million [1]. This threshold is designed to capture a wide range of retail operations, while providing a simplified payment structure to encourage voluntary compliance.

Officials in Islamabad said the scheme targets between 3.5 million and 4 million small traders [2]. The government is positioning this as a more accessible alternative for business owners who may have been deterred by complex filing requirements or the fear of audits.

This initiative follows the failure of a previous effort known as the Tajir Dost Scheme [1]. The new Asaan Scheme seeks to rectify those shortcomings by offering a more streamlined approach to tax registration and payment.

Traders are now faced with a choice between participating in the relief scheme or facing potential penalties [2]. The government intends for this shift to transition the retail sector toward a more transparent fiscal framework, while reducing the reliance on aggressive enforcement raids.

“The program is available nationwide for small traders and shopkeepers whose annual turnover does not exceed Rs200 million.”

This policy shift indicates a transition from punitive tax enforcement to a simplified, incentive-based model for the informal economy. By targeting millions of small-scale vendors, the Pakistani government is attempting to stabilize its fiscal position through a broader tax base rather than increasing rates for existing taxpayers.