The government has proposed a new requirement under the “Fixed Tax Asaan Scheme,” making it mandatory for traders to pay at least Rs. 25,000 when filing their tax returns. The measure is aimed at ensuring a minimum level of tax contribution from all participants in the scheme.
According to officials, the minimum payment will apply even if a trader’s calculated tax liability under the scheme is less than Rs. 25,000. This means that traders whose tax amount falls below the threshold will still be required to make the full minimum payment.
The government says the proposal is designed to simplify tax procedures while encouraging broader participation in the formal tax system. Authorities believe the scheme can help improve tax compliance and increase revenue collection.
Officials also explained that any withholding tax already paid by traders can be adjusted against their overall tax liability. This adjustment mechanism is intended to prevent double taxation and provide relief to taxpayers who have already contributed through withholding taxes.
However, if a trader does not meet the minimum payment requirement, the adjustment facility may not be available. In such cases, the standard fixed tax rate of 1% would apply without any deductions or adjustments.
The proposal is part of wider efforts to simplify taxation for small businesses and traders. Policymakers hope the scheme will make tax filing easier while ensuring that all participants contribute a minimum amount to the national revenue system.
Business groups and traders are expected to review the proposal closely as discussions continue. Many stakeholders are interested in understanding how the scheme will affect small businesses and whether it will encourage greater participation in the formal economy.
The final details are expected to become clearer once the government announces the complete budget and taxation framework for the upcoming fiscal year.
