The Federal Board of Revenue (FBR) has stepped up efforts to bring small shopkeepers and retailers into the formal economy through a simplified tax scheme designed to make registration and tax compliance easier. The initiative was discussed during a follow-up awareness session held at FBR headquarters in Islamabad on August 25, 2026, where Minister of State for Finance Bilal Azhar Kayani engaged with traders and other participants both physically and through a virtual connection.
The awareness session focused on the main features of the Small Shopkeepers Scheme, also referred to as the Retailer Scheme. The framework is intended to simplify the process for small retailers by offering easier registration, flexible payment arrangements and a straightforward operational structure. The government has positioned the initiative as an effort to reduce the complexity associated with tax compliance for small businesses and encourage more retailers to register with the tax authorities.
Addressing traders during the session, Bilal Azhar Kayani described the initiative as the simplest tax scheme introduced in the country’s history. He said the scheme had been developed in accordance with the vision and instructions of Prime Minister Shehbaz Sharif. According to the minister, the initiative provides traders with an opportunity to become part of the formal economy while fulfilling their national tax responsibilities and contributing to wider economic activity.
FBR Chairman Rashid Mahmood Langrial also highlighted the government’s approach toward facilitating small shopkeepers under the scheme. He said retailers would be able to register through the designated system and settle their tax liability by paying a 1% turnover tax. The simplified rate and registration mechanism are intended to make compliance more manageable for small retailers operating across the country.
Langrial said registered retailers would receive maximum facilitation from the tax authority. He also explained that green plates issued under the scheme would help identify compliant businesses and protect them from unnecessary scrutiny by tax officials. At the same time, he stated that action would be taken under the law against traders who remain unwilling to comply with the tax requirements.
A major component of the awareness session was the digital registration process. Participants were provided with a live demonstration of FBR’s digital system, including the dedicated web portal and mobile applications developed for both iOS and Android devices. The demonstration was aimed at showing traders how they can access the registration process digitally rather than relying entirely on traditional procedures.
The use of digital platforms is intended to make registration more accessible for small shopkeepers and reduce the administrative burden associated with joining the tax system. By providing dedicated online and mobile channels, FBR is seeking to make the scheme easier to access for retailers operating in different parts of the country.
Participants also took part in a question-and-answer session during the event, where concerns relating to registration and tax calculation were discussed. The interaction provided traders with an opportunity to seek clarification regarding the practical application of the scheme and understand how their tax obligations would be determined under the new framework.
Trade representatives welcomed the simplified digital process and reiterated their support for the initiative. Their participation reflected ongoing engagement between the tax authority and representatives of the retail and trading community as the government works to expand the formal tax base.
The session was attended by senior FBR officials as well as representatives of the trader community. Among those present were Ajmal Baloch, President of the All Pakistan Anjuman-e-Tajiran, and Muhammad Kashif Chaudhary, President of Markazi Tanzeem-e-Tajiran Pakistan.
The Small Shopkeepers Scheme represents an effort by the government to bring a larger number of small retailers into Pakistan’s formal economy through a simpler tax structure. With registration available through digital platforms and tax liability set at 1% of turnover for registered retailers, the government aims to lower the barriers to compliance while creating a more structured relationship between small businesses and tax authorities.
The FBR’s awareness campaign and direct engagement with trader representatives are expected to play a role in familiarising shopkeepers with the registration process and requirements. The government has also linked the initiative with broader efforts to increase tax compliance while providing facilitation to businesses that register under the scheme.
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