By Moin Ullah Shah
ISLAMABAD: The Federal Board of Revenue (FBR) has launched a new tax compliance scheme for small retailers, introducing an official ‘Green Plate’ programme that exempts participating shopkeepers from routine tax inspections while simplifying the tax filing process.
The initiative, introduced through S.R.O. 1109(I)/2026, is designed to encourage voluntary tax compliance by reducing direct interaction between retailers and tax officials. Under the scheme, eligible shopkeepers who register will receive an official Green Plate displaying an FBR-issued QR code, the owner’s name, National Tax Number (NTN) and business address. The plate must be displayed prominently outside the shop.
According to the FBR, Inland Revenue officers will not be permitted to enter participating shops for routine tax inspections or tax verification once the Green Plate has been issued and displayed. Authorities will instead verify business details electronically through the QR code.
The scheme also introduces a simplified income tax return that can be filed through the IRIS web portal or a dedicated mobile application. The return will require only basic information, including annual sales, purchases, business expenses and net profit. Shopkeepers will also be able to declare legitimate business assets using the simplified form, which will be available in Urdu and other regional languages.
Under the new procedure, participating retailers will pay income tax at the rate of one per cent of their gross annual turnover. Any eligible withholding tax already deducted during the year can be adjusted against their final tax liability.
The scheme is open to individual retailers whose primary source of income is retail business and whose annual turnover does not exceed Rs200 million during the 2026 tax year.
However, several categories have been excluded. The scheme does not apply to retailers whose turnover exceeded Rs200 million in any of the previous three tax years, individuals operating more than one retail outlet, Tier-One retailers, jewellers or professionals such as doctors, engineers and lawyers.
Retailers who filed income tax returns for the 2025 tax year may also opt into the programme, provided their tax liability is not lower than the previous year’s and they have not divided or renamed their businesses solely to qualify for the scheme.
Eligible shopkeepers can register through the IRIS online portal, the dedicated mobile application or by visiting the nearest FBR tax office.
The FBR said participation is entirely voluntary, allowing retailers to choose between the simplified Green Plate procedure and the standard income tax return system. However, participants will be required to make a minimum tax payment of Rs25,000 when filing their return. The final payable amount will be whichever is higher: the calculated tax after adjustment of withholding tax or the minimum payment of Rs25,000.
The tax authority said the initiative is intended to expand the tax base, improve voluntary compliance and create a more business-friendly environment for small retailers across Pakistan.
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