FBR targets 100,000 retailers for new fixed tax scheme from July 1

The Federal Board of Revenue (FBR) plans to bring 100,000 small retailers into a new fixed tax scheme from July 1, 2026, in the first stage, under which each participant will pay a minimum of Rs25,000 to avail its benefits.

The plan was outlined by FBR Member (Strategic Transformation) Dr Hamid Ateeq Sarwar during a meeting of the National Assembly Standing Committee on Finance on Monday.

He said the government aims to gradually encourage as many as 3.5 million small shopkeepers and retailers across the country to join the tax net through the scheme, with the initial focus on around 100,000 retailers.

According to Dr Sarwar, businesses registered under the scheme will receive a unique identification number and will be protected from routine visits and raids by tax officials.

“No tax official in the field formation will be allowed to visit or raid a shop that has been allocated a specific number plate under the scheme,” he told the committee.

He added that participating retailers would generally remain outside the audit net unless authorities identify significant discrepancies between declared income and visible assets, such as ownership of luxury vehicles or high-value properties in areas such as the Defence Housing Authority.

The FBR official said the initiative is part of broader efforts to improve documentation of the economy and expand the country's tax base.

Speaking on proposed changes to the super tax regime, Dr Sarwar said taxpayers earning more than Rs500 million annually account for an estimated revenue impact of Rs400 billion.