The Federal Board of Revenue has barred Inland Revenue officers from entering small shops and retail outlets over tax matters, under a new registration scheme requiring shopkeepers to display an official green plate outside their premises.
The FBR issued SRO 1109-2026, outlining a draft special procedure for small shopkeepers.
Under the scheme, shopkeepers will file a simplified return through the Iris web portal or a dedicated mobile application, declaring gross sales, gross purchases, other expenses and net profit. The same form allows shopkeepers to declare their legitimate assets through a simplified process.
A flat one percent tax will be charged on total business turnover under the special procedure, with shopkeepers permitted to deduct withholding income tax already paid from the amount due.
Every genuine registered shopkeeper will be issued a green plate bearing an FBR-specific QR code, the name of the shopkeeper, the NTN and the address of the shop. Display of the plate outside the shop, in a visible location, will be mandatory. The QR code will also carry details of the location and ownership of the shop.
According to the FBR, no officer or official will enter the premises of a genuine shopkeeper over tax matters once registered under the scheme.
The special procedure applies to individuals whose income is derived mainly from retail shops, with an annual business turnover of up to Rs 200 million, and will take effect for tax year 2026. It does not apply to owners of more than one shop, Tier-1 retailers, jewellers, or professionals such as doctors, engineers and lawyers.
Shopkeepers can complete registration with the FBR either through the mobile application or by visiting their nearest tax office.
