The government has introduced a simplified tax system for small shopkeepers across Pakistan, allowing them to become part of the tax net through an easy registration process and benefit from a fixed-tax regime.
According to details, shopkeepers with annual sales of up to Rs200 million will pay a flat 1% income tax under the new scheme. This means a lower and more predictable tax burden, eliminating complicated calculations and multiple tax rates.
The Federal Board of Revenue (FBR) has issued a simple registration form requiring basic details such as the shop owner’s name, shop address, CNIC number, business type, and annual sales. The form also contains brief information on registration and tax payment procedures, enabling the entire process to be completed on a single page.
The form will be available in Urdu and other regional languages. Small traders will be able to submit it through the FBR’s online portal or at nearby tax offices, making registration quick and accessible.
After submitting the form, shopkeepers will be required to pay a minimum initial fee of Rs25,000 to join the scheme. Failure to pay taxes or providing false information may result in fines ranging from Rs10,000 to Rs50,000.
According to the FBR, audit requirements for registered shopkeepers will be relaxed, and routine audits will be limited. Traders will also be allowed to adjust taxes already paid under previous arrangements, reducing additional financial pressure.
Registered businesses will receive an FBR registration plate and QR code, which must be displayed outside their shops. The government says that shopkeepers displaying the registration plate will not be subjected to routine questioning or inspections by FBR officials, helping reduce uncertainty and improve business confidence.
The scheme is part of the government’s broader effort to increase the number of registered small traders and expand Pakistan’s tax base while making compliance easier for businesses.
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