Government Announces Fixed Tax Scheme for Small Shopkeepers

Updated: 10:21 AM PKT — June 6, 2026

The federal government has officially launched its Tax Facilitation Scheme for small shopkeepers, aiming to bring an estimated three to four million retailers into the tax net. Announced by the finance minister, the optional scheme is for businesses with an annual turnover of up to Rs 200 million.

Under the new system, participating retailers will be exempt from Point of Sale (POS) requirements, routine tax audits, and obligations to act as withholding agents. They will receive a special compliance plate with a QR code for verification to prevent unnecessary inspections. Shopkeepers who neither join the scheme nor file normal returns will face monthly penalties starting at Rs 10,000 and increasing to Rs 50,000 by the third month.

Updated: 8:11 PM PKT — June 5, 2026

Further details of the government’s optional fixed tax scheme for small retailers reveal that businesses choosing neither to join the scheme nor file regular returns will face escalating monthly penalties, starting at Rs 10,000. Participants in the scheme will be exempt from the Federal Board of Revenue’s point-of-sale (POS) integration requirement and will generally not be subject to routine tax audits. Both existing tax filers and non-filers are eligible to opt-in.

The simplified one-page declaration form will be available in multiple regional languages, and registered shopkeepers will receive an official FBR plate to display. Officials clarified that the scheme does not apply to street vendors or pushcart owners. To participate, traders must ensure their tax payment is at least equal to what they paid in the previous year.

Updated: 6:08 PM PKT — June 5, 2026

Further details have been announced for the government’s new optional fixed tax scheme for small retailers. Officials clarified that both tax filers and non-filers can join the scheme, which offers an exemption from the Point of Sale (POS) system as a key incentive. To be eligible, a shopkeeper’s tax payment under the scheme must be at least equal to their payment from the previous year.

Finance Minister Muhammad Aurangzeb stated the government’s policy is to broaden the tax base rather than increase tax rates on existing payers. He noted that the scheme, which targets 3 to 4 million small shopkeepers, was developed in consultation with traders’ associations. Participating businesses will receive a display plate with a QR code from the FBR.

Updated: 5:06 PM PKT — June 5, 2026

Officials have clarified that the new fixed tax scheme for small retailers is optional, and those who join will benefit from exemptions from the Federal Board of Revenue’s Point of Sale (POS) system requirements and audits. The scheme is open to both existing tax filers and non-filers.

Authorities warned that retailers who fail to register under either the new fixed scheme or the standard tax regime will face penalties. It was also specified that street cart vendors are exempt from this initiative.