Pakistan’s tax authority urges shopkeepers to switch to fixed tax — Dawn
Pakistan’s Federal Board of Revenue (FBR) has urged small shopkeepers and retailers in Lahore to use a new fixed taxation scheme. It provides for simplified compliance with tax requirements, a one-page declaration and a rate of 1% of turnover, but no less than 25,000 rupees, Dawn reports.
Conditions for small businesses
Fiza Batool, the FBR’s Chief Commissioner of Inland Revenue in Lahore, explained the mechanism during a meeting with business representatives at the Lahore Chamber of Commerce and Industry. According to her, the special procedure for small shopkeepers was introduced through SRO 1166(I)/2026.
Scheme participants who meet its conditions will be exempt from regular audits, Point of Sale system integration requirements and digital invoicing. Registered traders will also be issued a green plaque to facilitate inspections.
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Voluntary participation and complaints
Fiza Batool stressed that the scheme is voluntary. Entrepreneurs can either continue filing declarations under the standard tax regime or choose the simplified option.
According to her, the green plaque is one of the safeguards against unjustified inspections: field teams will generally not enter the premises of a registered business unless a significant anomaly is identified. The official said the new procedure was introduced in response to a long-standing request from small business representatives and retailers for a fixed and simpler tax regime.
The FBR has also set up a hotline and a WhatsApp channel for submitting complaints and plans to introduce an open-office mechanism for taxpayer appeals. Batool noted that expanding the tax base is necessary to ensure a level playing field for businesses.
