Taxation of Small Shopkeepers

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In what can be called a landmark victory for Pakistan, a court of arbitration in The Hague has ruled that India cannot unilaterally suspend the Indus Waters Treaty, rejecting every argument New Delhi has used to justify holding the six-decade-old water-sharing agreement “in abeyance” since April 2025. The five-member court found that the treaty “remains fully in force” and that India “must observe its obligations” under it, including those governing the design and operation of hydropower projects on rivers that flow into Pakistan. India, which is officially a member of the court, said it did not recognize the court and "categorically" rejected the verdict. Although the ruling strengthens Pakistan's position, even if it offers no obvious way to force India's hand, it has once again brought into the limelight the hydropolitics being played over the treaty.

In a significant move to widen Pakistan's narrow tax base, the Federal Board of Revenue (FBR) has introduced the Special Procedure for Small Shopkeepers, which is a simplified and voluntary income tax regime designed to bring millions of retailers into the formal tax net. The scheme was notified and published through Income Tax SRO 1166, issued on July 28, 2026....

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Taxation of Small Shopkeepers

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