FBR bars IR officers from entering retail shops under Green Plate Scheme

The Federal Board of Revenue (FBR) has introduced a draft special tax procedure for small retailers to simplify tax compliance, reported 24NewsHD TV channel on Wednesday.

Under the proposed scheme, Inland Revenue officers will not enter registered shops that display an official FBR “Green Plate” for tax-related matters.

The FBR issued the draft procedure through S.R.O. 1109(I)/2026. The scheme covers individual retailers with annual sales of up to Rs200 million for tax year 2026.

Under the new system, eligible shopkeepers will submit a simplified tax return through the IRIS web portal or a dedicated mobile application. They will declare their sales, purchases, expenses, net profit, and legal assets.

The FBR will also provide tax forms in Urdu and regional languages to make the process easier for retailers.

According to the proposed procedure, participating shopkeepers will pay income tax at 1% of their gross turnover. They can adjust applicable withholding taxes against their tax liability.

However, each retailer must pay a minimum tax of Rs25,000 with the annual return. If the payable tax after adjustments exceeds Rs25,000, the retailer will pay the higher amount.

The FBR will issue a compliant Green Plate to registered shopkeepers. The plate will include a QR code, the owner’s name, National Tax Number, and shop address.

The tax authority said officers will not conduct tax-related visits to shops displaying the Green Plate. The scheme will also generally protect participating retailers from audits.

However, the optional scheme will exclude retailers with an annual turnover above Rs. 200 million during any of the last three years. It will also not apply to owners of multiple shops, Tier-1 retailers, jewelry sellers, or professionals, including doctors, engineers, and lawyers.

Existing retailers who filed tax returns for 2025 can also join the scheme. However, they cannot reduce their tax payments or restructure their businesses only to qualify.

The FBR aims to bring more than three million retailers into the fixed tax system through this initiative.

Meanwhile, the FBR has invited public objections and suggestions on the draft procedure within seven days of its publication in the official Gazette before issuing the final rules.

Reporter: Ashraf Khan