Small Retailer Tax Scheme has been introduced by Pakistan’s Federal Board of Revenue (FBR) through a new notification aimed at simplifying tax compliance for eligible individual retailers. The special procedure applies to Tax Year 2026 and offers a simplified tax structure for businesses meeting the eligibility criteria.
🏪 FBR Launches Small Retailer Tax Scheme
The Federal Board of Revenue (FBR) has officially issued a notification introducing a special tax procedure for small retailers.
According to the notification, individual retailers with an annual business turnover of up to Rs200 million will be eligible to benefit from the scheme.
The initiative is intended to simplify tax compliance for qualifying businesses while encouraging broader participation in the tax system.
📋 Scheme Applies Only to Tax Year 2026
FBR stated that the Small Retailer Tax Scheme will remain applicable only for Tax Year 2026.
Under the scheme, eligible retailers will pay a 1% tax on their total annual turnover instead of following the standard taxation procedure.
The simplified approach is designed to make tax filing easier for small business owners.
💰 Minimum Tax Payment Required
According to the notification, eligible retailers must pay a minimum cash tax of Rs25,000 when submitting their income tax return.
FBR also clarified that any withholding tax already paid can be adjusted against the payable tax liability.
However, if the withholding tax exceeds the payable amount, the excess will not be refunded.
📱 Multiple Registration Options Available
Eligible retailers will be able to register for the scheme through several official channels.
These include:
- IRIS online portal
- FBR mobile application
- Designated tax offices
The multiple registration options are intended to make enrollment more accessible for taxpayers across the country.
✅ Audit Relief and Digital Exemptions
FBR stated that retailers opting for the scheme will generally not be selected for routine tax audits.
However, departmental action may still be taken in cases involving unusual transactions or misuse of the scheme.
The notification also provides exemptions from:
- POS (Point of Sale) integration
- Digital invoicing requirements
These exemptions are expected to reduce compliance requirements for eligible businesses.
🟢 Green Plate QR Code and Penalties
FBR announced that registered eligible retailers will receive a Green Plate containing an official QR code issued by the tax authority.
The notification also warns that retailers who fail to submit their tax return or do not opt into the scheme by the prescribed deadline may face penalties ranging from Rs10,000 to Rs50,000.
Authorities said the new procedure is intended to encourage tax compliance while simplifying obligations for qualifying retailers.