ISLAMABAD (MNN); Pakistan’s Federal Board of Revenue (FBR) has introduced a draft Fixed Tax Scheme aimed at bringing small traders and shopkeepers into the tax net through a simplified taxation system.
According to an official notification issued on Wednesday, the proposed scheme will apply to shopkeepers operating a single outlet with an annual sales turnover of up to Rs200 million. Under the plan, eligible traders will pay a fixed tax of 1% on their annual sales turnover, subject to a minimum annual cash tax of Rs25,000.
The FBR estimates that the initiative could generate more than Rs50 billion in annual revenue. The scheme will remain voluntary, allowing eligible traders to either opt for the simplified tax regime or continue filing regular income tax returns.
The proposed framework excludes owners of multiple shops, Tier-One retailers, jewellers and individuals providing professional services.
The tax authority has invited traders, business associations and the public to submit objections and recommendations on the draft scheme within seven days.
Eligible traders will be able to register through the FBR’s IRIS online portal, the Tax Asan mobile application or their nearest tax office.
Under the scheme, registered shopkeepers will receive a green registration plate bearing a unique QR code, which must be displayed prominently outside their shops. According to the FBR, tax officials will not conduct routine tax-related visits to businesses displaying the green plate.
Participants in the scheme will also be exempt from installing Point-of-Sale (POS) machines and from routine tax audits. However, they will be required to disclose details of their net profit, income from other sources, total tax paid, bank balances, immovable property, cash holdings and other assets.
The FBR has also introduced a simplified one-page tax return form requiring basic information, including the shopkeeper’s name, address, CNIC number, type of business, annual sales, purchases and business expenses.
The tax authority clarified that audits may still be conducted if a trader’s declared business activity appears inconsistent with the acquisition of high-value assets. It warned that strict legal action would be taken against anyone found concealing information or misusing the scheme to evade taxes, adding that it may verify information received from third-party sources.
Registration Process
To register, traders will need the shop owner’s CNIC, a mobile number registered in their name, an active email address, the business address, electricity consumer number, shop size and annual sales details.
Individuals who are not already registered with the FBR must first obtain a National Tax Number (NTN) through the FBR portal using their CNIC. They can then log in to the IRIS portal or the Tax Asan app and apply through the Fixed Tax Scheme or Trader-Friendly Module.
The one-page registration form will be available in Urdu, English, Sindhi, Balochi and Pashto. Once the application is approved, the FBR will issue a green registration plate with a unique QR code for display at the business premises.
