FBR Introduces Green Plate Scheme to Protect Compliant Retailers
The Federal Board of Revenue (FBR) has introduced a major relief measure for small shopkeepers by barring Inland Revenue officers from entering their premises if they display the official “Green Plate.”
This initiative aims to reduce harassment and simplify tax compliance for retailers across Pakistan.
Simplified Tax Procedure for Small Shopkeepers
The FBR notified the draft Special Procedure for Small Shopkeepers through S.R.O. 1109(I)/2026 on Tuesday.
Eligible shopkeepers with an annual turnover of up to Rs200 million can opt for a simplified tax compliance regime. Under the scheme, they will file a simplified return declaring total sales, purchases, expenses and net profit through the IRIS portal or a dedicated mobile application.
The return form will be available in Urdu and regional languages to improve accessibility for taxpayers across the country.
Under the proposed regime, tax will be charged at a flat rate of 1% on gross turnover, while taxpayers will be allowed to adjust withholding taxes against their final tax liability.
Green Plate Offers Protection from Tax Officer Visits
A compliant shopkeeper displaying the FBR-issued Green Plate, featuring a QR code containing the shop’s details and ownership information, will be protected from visits by Inland Revenue officers on tax-related matters.
The Green Plate must be displayed prominently outside the shop to qualify for the protection offered under the scheme.
Eligibility Criteria for the New Retail Tax Scheme
The simplified procedure applies only to individuals whose primary source of income is from operating a retail shop.
However, the scheme does not apply to:
- Shopkeepers with annual turnover exceeding Rs200 million in any of the last three tax years.
- Owners of multiple retail shops.
- Tier-1 retailers.
- Jewelers.
- Professionals including doctors, engineers and lawyers.
Retailers who filed income tax returns for Tax Year 2025 may switch to the new regime provided their tax liability does not decrease and they have not restructured their business solely to qualify for the scheme.
Registration can be completed online, through the mobile application or by visiting the nearest FBR tax office.
The scheme remains optional, allowing eligible retailers to continue filing regular income tax returns if they prefer.
Minimum Tax Requirement Under the Scheme
A minimum tax payment of Rs25,000 in cash must accompany the return, irrespective of any withholding tax adjustments.
Taxpayers will be required to pay whichever amount is higher—the calculated tax under the 1% turnover regime or the minimum tax of Rs25,000.
New Scheme Aims to Encourage Documentation
The FBR believes the simplified taxation framework will encourage greater formalization among small retailers by making tax compliance easier while reducing unnecessary interaction between taxpayers and field officers.
The initiative is also expected to ease the administrative burden on the FBR and improve voluntary tax compliance across Pakistan’s retail sector.