The government has planned to bring 3.5 million small shopkeepers and traders with annual turnover of Rs200m into tax net during 2026-27.—PPI/file
ISLAMABAD: The Federal Board of Revenue (FBR) has proposed a simplified and voluntary income tax regime for small shopkeepers, offering exemption from routine audit, withholding tax obligations and mandatory digital invoicing in a fresh attempt to broaden the country’s narrow tax base.
The draft Special Procedure for Small Shopkeepers, issued on Tuesday, will be finalised within one week after objections and suggestions from the public.
Under the proposal, individual retailers with an annual turnover of up to Rs200 million will have the option of paying income tax equal to one per cent of their gross turnover instead of filing returns under the normal taxation regime.
However, participating retailers will have to pay a minimum cash tax of Rs25,000 even if taxes already deducted at source exceed their liability. Any excess withholding tax will not be refundable.
