KARACHI: Mian Zahid Hussain, President of Pakistan Businessmen and Intellectuals Forum (PBIF) and other notable business positions, has endorsed the government's newly introduced "Fixed Tax Asaan Scheme" for traders, declaring it a significant step toward formalizing the economy and broadening the tax base. According to Pakistan Businessmen and Intellectuals Forum, Hussain emphasized that the scheme, developed in consultation with the traders' community, will address past failures and effectively expand tax compliance among the country's traders.

Mian Zahid Hussain highlighted that the wholesale and retail sectors contribute 18 percent to the GDP, yet their tax contribution is only 4 percent. With approximately 4.4 million traders in Pakistan, only a small fraction currently file tax returns. The new scheme aims to include around 3.5 million small traders and shopkeepers, reducing tax evasion and promoting a documented economy. The initiative imposes a 1 percent fixed tax on traders with an annual turnover of up to Rs. 200 million, a measure intended to ease the financial burden on small businesses.

The scheme offers simplified tax forms in local languages and exempts participants from mandatory Point of Sale (POS) integration and tax audits, providing significant relief and reducing fear of harassment by tax authorities. Hussain also supported the exclusion of branded outlets and large retailers, which are part of the organized sector, and the exemption of small vendors, noting these as fair policies. The introduction of special QR code number plates for shops aims to prevent unwarranted inspections and enhance business credibility.

Strict penalties for traders opting out of the tax regimes are seen as necessary to ensure economic documentation. Hussain called on trade organizations to adopt the simplified tax system to enhance financial credibility and promote sustainable economic growth, reducing reliance on external financial support such as IMF loans.