Overview of the Proposed Tax Scheme
The Federal Board of Revenue (FBR) has notified S.R.O. 1109(I)/2026, introducing a draft voluntary special tax procedure framed under Section 99B of the Income Tax Ordinance, 2001. Under the proposed framework, qualifying small retailers may settle their income tax obligations by paying a fixed rate of 1% on gross annual turnover. This arrangement requires a minimum cash tax payment of PKR 25,000 upon submitting the simplified tax return.
Inspection Immunity via QR-Coded Green Plate
To reduce compliance hurdles and protect participating businesses, the draft rules grant protection from routine administrative oversight. Registered shopkeepers who exhibit an FBR-issued QR-coded 'Green Plate' at their business premises will be exempt from standard tax inspections and routine visits by Inland Revenue officers regarding tax matters.
Scope of Eligibility and Key Exclusions
The proposed special procedure is designed for individual shopkeepers managing a single retail store whose annual turnover does not exceed PKR 200 million for Tax Year 2026. Specific categories are excluded from participating, including multi-shop owners, Tier-1 retailers, jewellery sellers, and service professionals such as engineers, lawyers, and doctors. Additionally, individuals who earned over PKR 200 million in gross turnover during any of the preceding three years or who combine retail revenue with non-retail income sources cannot opt into this regime.
Feedback Window and Application Process
As the initiative is currently a draft S.R.O. Subject to public consultation, interested stakeholders and shopkeepers have seven days from its publication in the official Gazette to submit comments, objections, or suggestions to the FBR. Following finalization, enrollment will be accessible through the IRIS portal or mobile application for Tax Year 2026.