KARACHI: The launch of the Asaan Tajir App is anticipated to bring over four million new taxpayers into Pakistan’s formal economy and potentially generate Rs100 billion in tax revenue, according to Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum. The app aims to simplify compliance for small traders and reduce their direct interactions with the Federal Board of Revenue (FBR).

According to Pakistan Businessmen and Intellectuals Forum, the app was introduced at a joint press conference by key government figures, including Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb. The initiative, part of Prime Minister Mian Shehbaz Sharif's government efforts, is designed to integrate millions of undocumented retailers into the tax system. Key features include a simplified one-page tax return, a straightforward registration process, and a tax rate of one percent of annual turnover, with a minimum payment of Rs25,000. The app offers an Urdu interface and proposes a Green Plate initiative for compliant traders, promising them exemption from shop visits by FBR officials, a commitment that should be legally upheld.

The scheme targets approximately 4.2 million small traders and shopkeepers. Even if only a fraction initially join, the potential annual revenue from the minimum tax could be Rs25 billion. Mian Zahid Hussain emphasized that the scheme's success should focus on the expansion of the taxpayer base and additional revenue, rather than just app usage metrics. He noted the disparity in tax contributions between salaried individuals and the retail sector, highlighting the need for a more balanced tax system. Digital enforcement, rather than coercive measures, should be employed to incorporate more businesses into the documented economy.

Mian Zahid Hussain also advocated for a one-page, pre-filled tax return for salaried taxpayers, leveraging existing employer-provided salary and tax data. He called for the expansion of the app's language options and accessibility, including a web portal and free assisted-return-filing services. Help desks should be established to aid traders with limited digital skills.

Hussain expressed concerns that the one-percent turnover tax might disproportionately impact businesses with low profit margins. He urged the FBR to consider sector-specific profit margins and reassess the definition of a small shopkeeper. Regular publication of data related to the scheme's implementation, including new filer statistics and complaint records, was also recommended. After an initial facilitation phase, non-compliant businesses should face fair, technology-driven enforcement measures.