Around 3.5 mln shopkeepers to be brought into tax net: Bilal Kayani

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 19th Jun, 2026) Minister of State for Finance and Revenue Bilal Azhar Kayani on Friday said that around 3.5 million shopkeepers will be included in the tax net during fiscal year 2026-27.

Participating in the National Assembly debate on the federal budget 2026-27, he said the government’s economic policy aims to strengthen the national economy and ensure inclusive growth.

He congratulated Prime Minister Shehbaz Sharif, Field Marshal Syed Asim Munir, and the finance team, saying their efforts had improved Pakistan’s global standing.

He described the budget as a “people-friendly” document, saying it includes relief measures for different sectors.

He said when the government took office in February 2024, the economy was in a difficult condition and there were doubts about stability.

However, he added that under the Prime Minister’s leadership, economic stability was achieved, inflation declined, foreign exchange reserves increased, and the IMF programme was successfully completed.

He said the government met all fiscal targets in the fiscal year 2025 without presenting any supplementary or mini budget.

He highlighted relief measures for salaried individuals, saying tax rates had been reduced across multiple income brackets.

He said the tax rate for people earning Rs2.2 to Rs2.3 million annually was reduced from 23% to 20%. For those earning Rs3.2 to Rs4.1 million, the rate was reduced from 30% to 25%, while for income between Rs4.

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1 to Rs5.6 million it was reduced from 35% to 29%. For those earning Rs5.6 to Rs7 million, the rate was cut from 35% to 32%. He also said the super tax had been abolished.

He said exporters were given tax relief to reduce costs and improve competitiveness, while tax incentives for the IT sector were extended for three more years.

In the construction sector, measures were introduced to support housing access, including allocations under the “Apna Ghar” scheme to provide subsidised loans for house construction.

Kayani said that Rs 300 billion had been allocated for agriculture, along with Rs 110 billion under the Prime Minister’s Agriculture Youth Initiative.

Customs duty on agricultural machinery was removed to support farmers.

Sales tax exemptions were also given on essential items for women and family planning products. Incentives were provided to the shipping sector to strengthen trade capacity.

On tax expansion measures, he said a new scheme had been introduced to bring small traders into the formal system.

Shopkeepers with annual sales up to Rs 20 million will pay 1% tax. Registration will be done through a simple urdu form, and registered traders will receive a green plate from the Federal board of Revenue, with limited audit checks under normal circumstances.

He said the goal is to bring 3.5 million shopkeepers into the tax net.

He concluded by thanking business organisations for appreciating the budget measures.

APP/man-zah