FBR Bars Inland Revenue Officers from Entering Small Retail Shops Under New Tax Scheme

Islamabad: The Federal Board of Revenue (FBR) has prohibited Inland Revenue officers from entering eligible small retail shops for tax-related inspections under a newly introduced tax scheme, according to an official notification issued by the Revenue Division.

Under the notification, shopkeepers will be required to file a simplified tax return through the IRIS web portal or the mobile application. The return must include details of purchases, sales, expenses, profits, and legitimate assets.

Eligible retailers will pay a 1% tax on their total annual business turnover and will be allowed to adjust applicable withholding income tax against their tax liability.

Registered shopkeepers will receive a green identification plate to display outside their shops. The plate will feature a unique QR code, the shopkeeper’s name, National Tax Number (NTN), and the shop’s address. Inland Revenue officers will not be allowed to enter shops displaying the green plate for tax-related matters.

The scheme applies to businesses with an annual turnover of up to Rs200 million for the 2026 tax year.

However, Tier-1 retailers and jewelry businesses are excluded from the scheme. The new rules have been issued through SRO 1109 of 2026.