Pakistan’s Federal Board of Revenue (FBR) has introduced a proposed tax scheme aimed at simplifying tax compliance for small shopkeepers by offering a reduced income tax rate of 1%.
Under the proposal, traders with an annual turnover of up to Rs200 million will be eligible to join the scheme. Participants will be required to pay a minimum annual income tax of Rs25,000 and register through the FBR’s IRIS portal, mobile application or designated tax offices.
According to the FBR, businesses enrolled in the scheme will not be subject to routine tax audits. However, investigations may still be carried out where there are suspicions of tax evasion or irregular financial activity.
The tax authority said it also plans to simplify the filing of income tax returns by introducing an easy-to-use system available in Urdu and other regional languages.
The proposed scheme exempts participating traders from withholding tax deductions under Section 153 of the Income Tax Ordinance. They will also not be required to install point-of-sale (POS) systems or comply with invoicing requirements applicable to some other businesses.
Eligible traders will be issued a special “green plate” displaying a QR code, National Tax Number (NTN) and other registration details. According to the proposal, FBR officials will not be allowed to inspect businesses displaying the green plate without a valid reason.
The scheme will not apply to traders with annual sales exceeding Rs200 million, owners of multiple shops, Tier-1 retailers, jewellery businesses or certain professional service providers.
The FBR has invited traders, business organisations and members of the public to submit suggestions and objections to the proposed scheme within seven days before it is finalised.
Read more: Jetour launches limited-time offer on Dashing, X70 Plus
Also read: Fitna al-Khawarij, in state of panic, carries out suicide attack on a checkpoint abandoned long ago
