Finance Minister Muhammad Aurangzeb on Friday proposed a fixed tax scheme for small shopkeepers, to be introduced from July 1, under which traders with annual sales below Rs200 million will pay 1% of their yearly sales as tax.

Announcing the measure in his budget speech, the minister said shopkeepers enrolled in the scheme will be able to adjust their withholding tax against this liability.

A minimum payment of Rs25,000 will be required at the time of filing returns.

Traders opting into the scheme will be exempt from maintaining a point-of-sale machine and will not be subject to routine audits. A one-page tax return form, available in Urdu and all major regional languages, will be introduced for ease of filing.

Compliant shopkeepers will be issued a green signboard carrying a verified QR code to be displayed at their premises.

FBR officials will not be permitted to enter or question shopkeepers who display the signboard.