THE Fixed Tax Asaan Scheme for traders with an annual turnover of up to Rs200m has been designed as a ‘pragmatic alternative’ to pull Pakistan’s vast, informal retail sector into the tax net without triggering the political backlash a bolder reform would invite. It is a concession to a powerful constituency that forms the core of the ruling PML-N in Punjab — and its costs will be borne by those already inside the documented economy. The math is simple. The retail sector turns over an estimated Rs10-15tr annually but contributes almost nothing to direct tax revenues. The scheme’s Rs50bn target, even if fully met, would represent a rounding error against what actual compliance at standard rates could yield. A 1pc voluntary turnover........

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