Key Takeaways
- The Federal Board of Revenue (FBR) has introduced a fixed tax scheme for small shopkeepers.
- The scheme offers a one-page return and a tax rate of 1% of turnover, with a minimum tax of Rs25,000.
- Eligible businesses will be exempt from routine audit and digital invoicing requirements.
The Federal Board of Revenue (FBR) has urged small shopkeepers and retailers to benefit from the recently introduced fixed tax scheme, designed to simplify the tax process for small businesses.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI), Fiza Batool, the chief commissioner (Inland Revenue) of FBR, Lahore, highlighted the scheme's benefits, emphasizing that it aims to bring more small businesses into the documented economy.
Under the scheme, eligible businesses will be facilitated through exemptions from routine audit, Point of Sale (POS) integration, and digital invoicing requirements, while a green plate will be provided to registered shopkeepers to facilitate inspection.
Ms Batool explained that the scheme follows the principle of 'One Page, One Return, One Percent,' requiring minimum information from eligible traders, with the tax calculated at 1% of turnover, subject to a minimum liability of Rs25,000.
The scheme is voluntary, allowing traders to either continue filing returns under the normal tax regime or opt for the new, simplified one.
The FBR has established a helpline and WhatsApp facility for complaints and will also initiate an open-court mechanism to provide another platform for taxpayers to air their grievances.
Ms Batool stressed the importance of the dignity and self-respect of businesspeople, emphasizing that taxpayers should not face unnecessary harassment.
She assured the participants of full cooperation from the FBR and said the doors of the department’s offices were open to businesspeople for resolution of their genuine concerns.
The scheme, introduced through SRO 1166(I)/2026, was designed in response to a long-standing demand of the business community and retailers for a fixed and simplified tax regime.
The scheme is aimed at bringing more small businesses into the documented economy by making taxation easier, transparent and less burdensome.
Fiza Batool, Chief Commissioner (Inland Revenue) of FBR, Lahore
