ISLAMABAD: The Federal Board of Revenue (FBR) has rolled out a new tax relief scheme aimed at easing compliance for small retail businesses. The initiative includes a simplified tax payment process and restrictions on raids for registered shops displaying a Green Plate.
As part of the draft guidelines, Inland Revenue officers will be prohibited from entering shops that display a Green Plate under the new scheme. This Green Plate will feature a QR code along with the shopkeeper’s National Tax Number (NTN), name, and business address, making identification straightforward.
Eligible shopkeepers will be able to submit their tax returns through the IRIS portal or a dedicated mobile app, utilizing a simplified form that will be available in Urdu and other regional languages to facilitate easier filing.
The scheme proposes a flat tax rate of 1% on the total annual turnover of the business. Businesses with an annual turnover of up to Rs200 million can participate in this program.
However, certain categories such as owners with multiple shops, Tier-1 retailers, jewelers, and professionals including doctors, engineers, and lawyers will not qualify for this benefit.
Participation in the scheme will be voluntary, giving traders the choice to continue filing under the existing tax system if they prefer. To be eligible, shopkeepers must fulfill a minimum tax payment of Rs25,000.
