The government has rolled out major tax relief measures and structural changes to reduce the burden on businesses, exporters, salaried workers and small traders, according to the Minister of State for Finance Bilal Azhar Kiyani. Speaking at the Lahore Chamber of Commerce and Industry, Kiyani said the super tax had been abolished entirely for exporters and businesses earning between Rs150 million and Rs500 million annually. For companies earning above Rs500 million, the super tax rate has been cut from 10 percent to 8 percent. The government has also reduced the tax deduction on export proceeds from 2 percent to 1.25 percent.
A new simplified tax scheme has been developed specifically for small traders with annual sales up to Rs200 million. The scheme is optional, and participating traders would generally be exempt from routine audits based on differences from previous years, though audits can still be conducted if unusual discrepancies are identified. Traders in the scheme will receive a physical Federal Board of Revenue plate to display outside their shops to deter unnecessary official visits and prevent harassment. They will not be required to become withholding agents or to install point-of-sale machines.
The government is also introducing a new tax operating model featuring centralised and faceless audit and assessment mechanisms. This system will reduce individual discretion and the possibility of collusion. Dedicated Federal Board of Revenue facilitation structures have been established in major export hubs including Karachi, Faisalabad, Lahore and Sialkot. For salaried persons, the government has abolished the surcharge and reduced tax rates across most income slabs. An estimated 600,000 to 700,000 shopkeepers with commercial electricity meters are already registered as filers.