The Federal Board of Revenue (FBR) has issued a notification introducing a special tax procedure for small shopkeepers.
According to the notification, individual retailers with an annual turnover of up to Rs200 million will be eligible to benefit from the scheme.
The FBR said the special tax regime will apply only for Tax Year 2026. Under the scheme, eligible retailers will be required to pay 1% tax on their gross annual turnover.
The notification further states that participants must pay a minimum cash tax of Rs25,000 when filing their income tax return. Any withholding tax already paid can be adjusted against the payable tax, but excess amounts will not be refunded.
Eligible retailers will be able to register for the scheme through the IRIS portal, the FBR mobile app, or their local tax office. The FBR also said that retailers opting for the scheme will generally be exempt from routine tax audits.
However, the notification warns that the tax authorities may initiate action in cases involving unusual transactions or misuse of the scheme. Eligible participants will also be exempt from using the Point-of-Sale (POS) system and digital invoicing requirements.
According to the FBR, retailers who fail to file their tax return or opt into the scheme by the prescribed deadline will face fines ranging from Rs10,000 to Rs50,000. Registered eligible retailers will also receive an FBR-issued “Green Plate” featuring a QR code.
Earlier, the Federal Board of Revenue had announced that the filing of Income Tax Returns for Tax Year 2026 would officially begin on July 27. The FBR spokesperson urged all taxpayers to submit their returns accurately, completely and honestly to help improve the country’s tax system.
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