FBR Introduces Special Tax Regime for Small Retailers
Islamabad: The Federal Board of Revenue (FBR) has issued a notification introducing a special tax regime for small retailers aimed at simplifying tax compliance for eligible businesses.
According to the notification, individual retailers with an annual turnover of up to Rs. 200 million will be eligible to benefit from the scheme. The special tax regime will apply only for Tax Year 2026, under which participants will pay a 1% tax on their total annual turnover.
The FBR has made it mandatory for participants to pay a minimum cash tax of Rs. 25,000 along with their tax return. Any applicable withholding tax will be adjusted against the tax liability, while excess tax paid will not be refunded.
Eligible retailers will be able to register for the scheme through the IRIS portal, the FBR mobile application, or by visiting their nearest tax office. The FBR said businesses opting for the scheme will generally be exempt from routine tax audits.
However, the notification states that departmental action may be taken in cases involving unusual transactions or misuse of the scheme. Retailers registered under the special regime will also be exempt from the Point of Sale (POS) system and digital invoicing requirements.
The FBR warned that failure to file a tax return or opt into the scheme by the prescribed deadline could result in fines ranging from Rs. 10,000 to Rs. 50,000. Registered eligible retailers will also receive a “Green Plate” bearing an FBR-issued QR code as proof of enrollment in the scheme.
