Effective 29 September 2026, the FBR has commenced the initial implementation phase of a Special Tax Scheme designed for small shopkeepers and retailers. This scheme, introduced under the Finance Act 2026, aims to simplify tax compliance for micro and small enterprises by offering a fixed, low-rate turnover tax in lieu of complex income tax return filing. The pilot phase covers selected urban centers and will be monitored for uptake, revenue impact, and administrative feasibility before nationwide rollout. The initiative aligns with the government’s broader strategy to formalize the informal economy and broaden the tax base.
Key Takeaways
- Simplified Fixed Tax Regime: Eligible shopkeepers with annual turnover below a prescribed threshold can opt for a nominal fixed tax payment, eliminating the need for detailed bookkeeping and annual income tax returns.
- Digital Enrollment and Payment: Registration and tax payment are facilitated through the FBR’s Iris portal and the Asaan Tajir mobile application, promoting digital inclusion and reducing compliance costs.
- Graduated Compliance Pathway: The scheme includes provisions for voluntary transition to the standard tax regime as businesses grow, ensuring a smooth graduation without punitive measures for past informal status.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement