FBR's New Fixed Tax Scheme Targets 100,000 Retailers
The Federal Board of Revenue is rolling out a new fixed tax scheme aimed at 100,000 small retailers starting 1 July 2026, part of a broader push to bring undocumented shopkeepers into the formal tax net.
How the scheme works
According to Profit by Pakistan Today, the first stage targets 100,000 retailers who will each pay a minimum of Rs25,000 to participate in the scheme, which replaces case-by-case assessment with a predictable flat monthly liability. The approach mirrors earlier retailer schemes but comes with tighter enforcement, as FBR has been expanding point-of-sale integration and data-matching to identify shops that remain outside the tax system entirely.
Why it matters beyond retailers
For customers, formalising the retail sector is meant to eventually widen the sales tax base without raising headline rates further. For anyone running a small shop or side business, it is a reminder that FBR's compliance net keeps tightening — informal cash-only trading is getting harder to sustain without drawing attention.
If you sell goods and need to work out how much sales tax to charge or absorb, our Sales Tax Calculator and Invoice Generator can help you keep your paperwork straight.
Note: This is a plain-language summary, not tax/financial advice. Rates and rules can change; verify your specific case with the relevant authority or a qualified professional. See our editorial policy for how we source and date these updates.