ISLAMBAD – The Federal Board of Revenue (FBR) has introduced the mechanism for a fixed tax scheme aimed at small traders, allowing eligible shop owners with annual turnover of up to Rs200 million from a single outlet to benefit from the initiative.
An SRO issued by the FBR proposed scheme involves a one percent tax on total turnover, with the government expecting annual revenue of more than Rs50 billion through the program.
The scheme is voluntary, and traders will have the option to continue filing regular income tax returns. Participants will be required to deposit a minimum tax amount of Rs25,000 in cash.
Owners operating multiple shops, Tier-1 retailers, jewelers, and professional service providers will not qualify for the scheme.
FBR has invited objections and suggestions on the draft within seven days. Registration can be completed through the IRIS portal, mobile application, or nearby tax offices. Eligible traders will receive a “Green Plate” for their shops.
Under the proposed framework, FBR officials will not enter Green Plate shops for routine tax matters, while participating traders will not be required to install Point of Sale (POS) machines or undergo regular tax audits.
The scheme requires traders to provide details of business income, expenses, assets, bank balances, cash holdings, and other relevant information. FBR has also introduced a simplified one-page tax return form requiring basic business details, sales, purchases, and expenses.
The tax authority stated that audits may be conducted in cases of unusual business activity, major asset purchases, misuse of the scheme, or concealment of information based on data received from third parties.
Also Read: FBR Introduces Significant Changes for Property Developers
