The Pakistani government is implementing stringent measures to boost state revenues and secure another bailout, raising concerns among experts and industrialists about potential public backlash.

The Federal Board of Revenue (FBR) plans to impose monthly taxes ranging from Rs100 to Rs10,000 on retailers and small shopkeepers, following a series of tax hikes.

The FBR aims to extend the Fixed Retailers Scheme to 42 additional cities, with taxes based on shop value and earnings, in compliance with IMF requirements. This includes increased income taxes for salaried individuals and new taxes on retailers and small businesses.

The FBR’s goal is to collect Rs50 billion from small shopkeepers in the current fiscal year. Despite initiating the registration of small shopkeepers several months ago, the effort faced resistance and concerns from the business community.

Critics argue that taxes should be income-based rather than fixed. Small traders and shopkeepers, already struggling with numerous challenges, urge the government to address smuggling and create a more favorable business environment.