ISLAMABAD: The federal government on Friday reduced the price of petrol by Rs4 per litre while keeping the price of high-speed diesel (HSD) unchanged for the next one week, according to a notification issued by the Ministry of Energy’s Petroleum Division.

The notification said the revised prices will take effect from June 6, 2026 (today). Accordingly, it stated that the ex-depot price of petrol has been reduced to Rs377.78 per litre from Rs381.78 per litre, while the price of high-speed diesel remains unchanged at Rs380.78 per litre.

The latest adjustment comes after a series of fuel price revisions in response to fluctuations in international oil markets. Last week, the government slashed the prices of both petrol and diesel by Rs22 per litre, providing significant relief to consumers amid changing global energy prices.

Petrol is used by motorbikes and cars. High-speed diesel is widely used in the transport and agriculture sectors. Among other fuels, kerosene oil is used in remote areas, especially in the northern parts of the country where LPG is not available for cooking purposes. Light diesel oil is used in industry.

The oil industry has recently witnessed a surge in smuggled petroleum products, which has been a key threat to the sale of petrol and diesel by refineries. The government has taken some measures, but the smuggling continues, posing a serious threat even to the upgradation plans of local refineries.

ISLAMABAD: Following the apparent failure of the Tajir Dost Scheme announced a year ago to expand the tax net, the government on Friday unveiled another scheme, dubbed the ‘Fixed Tax Asaan Scheme’, for small traders and shopkeepers with an annual turnover of up to Rs200 million.

The announcement was made through a recorded message by Finance Minister Muhammad Aurangzeb, Minister of State for Finance Bilal Azhar Kiani, and Member, Federal Board of Revenue (FBR), Hamid Attique Sarwar. They said the fixed tax regime had been finalised in consultation with trader bodies and representatives in response to their demand for a simplified tax compliance mechanism.

Kiani, who led the government team in detailed negotiations with the trader community, said the new fixed tax scheme would apply to businesses with an annual turnover (total sales) of up to Rs200 million. Under the scheme, a tax of one per cent would be payable through a simple form that would be made available in all local languages.

The finance minister said the payable tax would be adjustable against withholding tax already paid, provided that a minimum of Rs25,000 was paid at the time of filing the tax form. Otherwise, the standard tax rate of 1pc would apply.

He said the scheme would be optional for traders, who could choose to join it or continue under the normal tax regime. Those opting for the fixed tax scheme would be issued a special plaque for display at their business premises, containing details such as their name, registration number and National Tax Number (NTN), along with a QR code.

According to the minister, a tax inspector would be able to scan the QR code on the plaque and, if it was found to be genuine, would not be permitted to enter the premises for tax-related inspections.

Kiani said those opting for the new scheme would be exempt from the Point-of-Sale (POS) requirement as well as from audits. In exceptional cases, any tax dispute that arose would be resolved in consultation with the relevant traders’ association.

Non-filers and existing filers would also be eligible to join the scheme, provided their annual turnover had not exceeded Rs200 million in any of the preceding three years and the minimum tax payable was higher than that paid in the previous year.

He said a third category of traders — those who remained outside both the fixed tax scheme and the normal tax regime — would be liable to a fine of Rs10,000 per month for the first month, rising to Rs25,000 per month in the second month and Rs51,000 per month in the third month.

The minister of state added that the new fixed tax scheme had been designed based on lessons learned from past failed schemes and “would be successful this time”.

He said kiosks and pushcart-based small traders would be exempt from the fixed tax scheme.

Sarwar said there were around 4.4 million traders, of whom about 3.5 million would be covered under the new scheme. He said larger traders, classified as Tier-1 and mostly operating in the branded sector, would not be allowed to opt for the scheme. The number of such Tier-1 businesses was estimated at between 50,000 and 100,000.

Sarwar said most of those falling under the new scheme were paying little or no tax, and even their small contributions would make a significant difference instead of burdening compliant taxpayers. He stressed that the scheme should not be described as an amnesty scheme.

Officials said the scheme would cover those who had operated a business for at least three years, maintained a shop or business premises, and belonged to professions other than specialised services. Small taxpayers who were already filing tax returns before 2025 could also join the simplified scheme if they met the required conditions.

Traders would be able to register through the FBR website, mobile apps or tax practitioners, and would be required to maintain simple and organised records of sales, expenses, purchases and other business transactions for ease of compliance.

Advantages like Active Taxpayer List (ATL) status, lower withholding taxes, and improved financial credibility would become available to those opting for the scheme.

The development comes ahead of the presentation of the federal budget for the next fiscal year (FY2026-27). Scheduled for June 10, the budget is expected to be formulated under the tight oversight of the International Monetary Fund (IMF).