Small shopkeepers get new FBR tax scheme with Rs25,000 annual tax

The scheme will allow eligible traders to manage tax matters more easily. Finance Minister Muhammad Aurangzeb said the scheme was prepared after consultation with trader representatives. He assured small traders that they would not be harassed by tax officials under the new system.

Tax process made easier

Aurangzeb said bringing different sections of society into the tax system was important for improving tax collection. He added that the Federal Board of Revenue and Pakistan Revenue Automation Limited had worked to make the process simpler.

The new system is designed specifically for small businesses that may find the existing tax process difficult. Officials said the aim is to make registration, filing and tax payments more convenient.

Mobile app and green registration plate

Minister of State for Finance Bilal Azhar Kayani said eligible shopkeepers would be able to file tax returns through a mobile phone application. They would also be able to pay their taxes using the digital system.

Registered small traders will receive a green registration plate under the scheme. The plate will identify businesses covered by the new tax arrangement.

Who can qualify for the scheme?

Shopkeepers covered by the scheme will be exempt from the point-of-sale system. Kayani said FBR officials would not enter shops displaying the green registration plate, giving registered traders protection from routine visits.

Eligible small shopkeepers will have to pay a minimum annual tax of Rs25,000. The scheme is available to businesses whose annual sales have not exceeded Rs200,000,000 in any of the past three years.

The new scheme could make tax compliance easier for small shopkeepers by reducing paperwork and introducing mobile-based services. The green registration plate could also provide traders with greater clarity about their status under the scheme.

The minimum annual tax of Rs25,000 gives the government a fixed amount to collect from eligible businesses. At the same time, the sales limit is designed to keep the scheme focused on smaller traders.

The main challenge will be implementation. If registration and tax filing remain simple in practice, the scheme could encourage more small businesses to enter the formal tax system.

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