ISLAMABAD (Web Desk) – The Federal Board of Revenue (FBR) has announced a new tax relief package for small shopkeepers, introducing a simplified taxation scheme and protection from raid inspections for participating retailers.
Under the initiative, shops that join the scheme will receive a special “Green Plate” displaying a QR code, the retailer’s National Tax Number (NTN), the business name and the shop’s address. According to the FBR, Inland Revenue officers will not be allowed to conduct raid inspections at shops displaying the Green Plate, a move aimed at reducing harassment and encouraging voluntary tax compliance.
The tax authority has also issued a draft framework for a simplified return filing system. Eligible retailers will be able to submit their tax returns through the IRIS online portal or a mobile application using a simplified return form. The FBR said the forms will be available in Urdu and other regional languages to make the process easier for small business owners.
Under the proposed scheme, participating retailers will pay a 1 percent tax on their total business turnover. The FBR said the initiative is designed for small retailers with annual sales of up to Rs200 million.
However, several categories of businesses will not qualify for the scheme. Owners of multiple shops, Tier-1 retailers, jewellers and professionals such as doctors, engineers and lawyers will remain outside the program and will continue to be taxed under existing rules.
The FBR clarified that participation in the scheme is entirely voluntary. Retailers who do not wish to join may continue filing returns under the current tax system. Those opting into the new scheme will be required to pay a minimum annual tax of Rs25,000.
Officials said the Green Plate system is intended to create a transparent and easily verifiable record of registered retailers while reducing direct interaction between tax officers and small businesses. The QR code will allow authorities to confirm a shop’s registration status electronically.
Business groups have long complained about complex tax procedures, frequent inspections and compliance costs. The new initiative appears to be part of the government’s broader effort to expand the tax base by encouraging informal businesses to enter the documented economy through a simpler and less intrusive system.
The FBR believes the scheme could help improve tax collection from the retail sector while providing relief and certainty to small shopkeepers. Officials say further consultations with traders’ associations and stakeholders will continue before the final rules are implemented.
