ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday barred Inland Revenue Officers from entering the premises of small shops and retailers, who would display FBR’s shopkeeper plate (“Green Plate”) at their shops across the country.
Through an S.R.O. 1109 (l)2026, the FBR has notified draft Special Procedure for Small Shopkeepers on Tuesday.
The FBR said that the shopkeepers shall file a simplified prescribed return on the IRIS web portal or through shopkeepers’ mobile application, declaring total sales, total purchases, other expenses, and net profit.
The same simplified form also provides an easy mechanism for shopkeepers to declare their legitimate assets. This form shall be available in Urdu and regional languages.
Tax shall be charged at the rate of one percent of gross turnover.
Also read: Recurrent budget, expenditures for 2026-27: FBR issues strict procedure for fund release
Shopkeepers may deduct withheld income tax from their payable amount.
“Every bona fide shopkeeper qualifying and opting for this special procedure shall be issued a compliant shopkeeper plate (“Green Plate”) containing an FBR specified QR-Code, the shopkeeper’s name and NTN, and the address of the shopkeeper, which shall be prominently placed outside the shop.
This QR-code shall contain information about location of the shop and particulars of ownership.
“No officer or official of FBR shall enter the shop in presence of this plate in respect of tax matters of a bona fide shopkeeper,” the FBR said.
This special procedure shall apply to individuals earning income mainly through retail shops with annual turnover up to Rs200 million.
This special procedure shall apply for tax year 2026.
This procedure shall not apply to individuals whose turnover exceeded Rs200 million in any one of the preceding 3 years; those owning more than one shop; Tier-l retailers; sellers of jewellery; and providers of professional services (e.g. doctors, engineers, lawyers).
Retailers who filed a return for tax year 2025 may also file a return under this Special Procedure for small shopkeepers, provided their payable tax is not lower than what it was in 2025, and they have not split up or renamed their business to avail this special procedure.
The shopkeepers may register with FBR through the IRIS web portal, shopkeepers’ mobile application, or by visiting the nearest tax office for assistance in registration.
The procedure shall remain optional, and a shopkeeper may either pay tax under this procedure or can file a regular income tax return.
To avail this special procedure, the shopkeepers must pay a minimum of Rs25,000 in cash along with return of income regardless of any tax deduction or collection at source under the Income Tax Ordinance.
Tax payable (less withholding) or Rs25,000 whichever is higher shall be the tax payable, the FBR added.
Copyright Business Recorder, 2026