FBR unveils tax relief package for small shopkeepers

ISLAMABAD, July 16: The Federal Board of Revenue (FBR) has announced a relief package for small shopkeepers, introducing a simplified tax scheme that bars Inland Revenue officers from conducting raids on registered businesses displaying a Green Plate, ARY News reported.

According to the draft procedure issued by the FBR, Inland Revenue officers will not be allowed to enter shops displaying the Green Plate under the new scheme.

The tax authority said eligible shopkeepers will be able to file their tax returns through the IRIS portal or a mobile application using a simplified return form. The return form will also be available in Urdu and other regional languages to make the filing process easier.

Under the proposed scheme, a one percent tax will be charged on the shop’s total annual turnover.

The Green Plate will carry a QR code, the taxpayer’s National Tax Number (NTN), the shopkeeper’s name and the business address.

The scheme will be available to shopkeepers with an annual turnover of up to Rs200 million.

However, owners of multiple shops, Tier-1 retailers, jewellers, and professionals including doctors, engineers and lawyers will not be eligible for the scheme.

The FBR clarified that joining the scheme will be voluntary, and traders who do not wish to opt in may continue filing their tax returns under the existing tax system.

To qualify for the scheme, shopkeepers will be required to pay a minimum tax of Rs25,000, according to the FBR.

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