FBR urges shopkeepers, retailers to opt for fixed tax scheme

The Federal Board of Revenue (FBR) has encouraged small shopkeepers and retailers to take advantage of a new fixed tax scheme, designed to simplify compliance and lower tax burdens for small businesses. The scheme, introduced through Special Order 1166(I)/2026, features a one percent tax rate on turnover, with a minimum tax of Rs25,000.

FBR Chief Commissioner Fiza Batool explained that the goal of the scheme is to increase the number of small businesses operating within the formal economy by making tax processes more transparent and less burdensome. During her visit to the Lahore Chamber of Commerce and Industry, Batool presented the special procedure for small shopkeepers, highlighting exemptions from routine audits, Point of Sale (POS) integration, and digital invoicing requirements.

Additionally, registered businesses would receive a green plate to aid inspections. The FBR official emphasized that the scheme is voluntary, allowing businesses to either continue with their normal tax filing or join the new simplified system. Batool stressed the importance of broadening the tax base and called on more businesses to adopt proper documentation and taxation practices.

She assured the business community of the FBR's cooperation and the availability of resources, such as a helpline and WhatsApp facility, to address their concerns. The FBR has implemented special safeguards for small shopkeepers, including field teams only entering premises with significant anomalies, reducing unnecessary harassment.