Pakistan’s Federal Board of Revenue (FBR) has introduced a special tax scheme for retailers and small businesses with an annual turnover of up to Rs200 million.
Under an official notification issued by the FBR, eligible businesses will pay a flat tax of 1% on their gross annual turnover for the 2026 tax year.
The notification also states that retailers who fail to file their tax returns by the prescribed deadline or do not opt for the scheme may face fines ranging from Rs10,000 to Rs50,000.
According to the FBR, the initiative is intended to simplify tax compliance for small businesses, expand the tax base and improve tax collection under a streamlined framework.
