Muhammad Farooq Chaudhry, President of the Restaurants, Caterers, Sweets and Bakers Association, welcomed the Federal Government’s Fixed Tax Scheme for small traders, calling it a positive step toward a simpler, more transparent and business-friendly tax framework. He said the move will make compliance easier for many small businesses across Pakistan.
Chaudhry noted that the scheme, launched after consultations with traders’ representative bodies and market associations, is a commendable example of policymaking informed by the private sector. He said the Fixed Tax Scheme can help millions of small business owners navigate the complexities of the existing tax system and encourage voluntary participation in the tax net.
He highlighted the introduction of a one percent fixed tax rate for businesses with annual sales up to Rs. 200 million and the simplified one-page tax return form as significant conveniences for traders. Chaudhry also appreciated the proposal to allow adjustment of previously paid withholding taxes, saying this step will reduce compliance burdens and improve cash flow management for small enterprises.
Chaudhry emphasized that continued efforts to simplify and increase transparency in the tax system will not only enhance tax collection but also support the documentation of the economy. He urged that traders’ organisations and sector representatives remain part of future consultations to ensure policies remain practical and effective.
He praised Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani for their commitment to tax reforms and expressed hope that the Fixed Tax Scheme will improve the business environment, promote investment and stimulate economic activity across the country.
