LCCI President welcomes FBR’s Fixed Tax Scheme for small traders

By Muhammad Hussain

LAHORE: Chief Commissioner Inland Revenue, Federal Board of Revenue (FBR), Fiza Batool has urged small shopkeepers and retailers to benefit from the fixed tax scheme introduced under SRO 1166(I)/2026, saying that the voluntary scheme has been designed to facilitate small businesses through simplified compliance, a one-page return and a tax rate of 1% of turnover, subject to a minimum tax of Rs25,000.

She said the scheme was aimed at bringing more small businesses into the documented economy by making taxation easier, transparent and less burdensome.

She was speaking at the Lahore Chamber of Commerce and Industry, where she visited to brief the business community about the special procedure for small shopkeepers introduced through SRO 1166(I)/2026. LCCI President Faheem Ur Rehman Saigol welcomed Fiza Batool and the FBR team to the Chamber.

Senior Vice President Tanveer Ahmad Sheikh, Commissioner Inland Revenue, Amna Kamal, Additional Commissioner, Sarah Khan were also present. Former LCCI President Tahir Javed Malik, and Executive Committee Members Asif Khan, Amir Ali, Amna Randhawa, Rana Nisar, Firdos Nisar and Rana Shouban Akhtar also attended the session.

LCCI President Faheem Ur Rehman Saigol said that the introduction of a simplified fixed tax regime for small traders was a longstanding demand of the Lahore Chamber. He said LCCI had always advocated an easy, transparent and workable taxation system for small traders and shopkeepers so that they could fulfil their tax obligations without facing complicated procedures.

He appreciated the fact that the scheme was voluntary, allowing businesses to remain under the normal tax regime if they so desired. He said the one-page return would save time, reduce the cost of compliance and make tax filing considerably easier for small businesses.

The LCCI President said the use of digital technology and the introduction of an FBR application for the scheme were positive steps that could make compliance more convenient. He said the simplified system could encourage a larger number of small businesses to become part of the documented economy.

Faheem Ur Rehman Saigol said the facilities provided under the new regime were encouraging for the business community. He said eligible small traders with annual turnover up to Rs200 million would pay tax at 1% of turnover, with a minimum tax liability of Rs25,000, while enjoying relief from POS, digital invoicing and routine audit requirements.

He said the objective should be to make taxation easier so that businesses voluntarily enter the tax net. This would not only broaden the tax base but also help create a level playing field for existing taxpayers who were already fulfilling their obligations.

He stressed that the process of tax reform should continue and called for a broader effort to make the tax system simpler, more transparent and business-friendly. Such reforms, he said, would help reduce the cost of doing business, encourage investment and accelerate economic activity.

Speaking further, Fiza Batool said under the scheme, eligible businesses would be facilitated through exemptions from routine audit, Point of Sale (POS) integration and digital invoicing requirements, while a green plate would be provided to registered shopkeepers to facilitate inspection. She said the scheme was voluntary and traders could either continue filing returns under the normal tax regime or opt for the new simplified regime.

She said broadening the tax base was essential for creating a level playing field and noted that only a limited number of people were currently paying taxes compared with the country’s population. She appreciated the contribution of the business community and said that more businesses needed to gradually move towards proper documentation and taxation.

The Chief Commissioner said the Chamber played an important role as a bridge between the tax department and the business community. She assured the participants of full cooperation from the FBR and said the doors of the department’s offices were open to businesspeople for resolution of their genuine concerns.

She said the FBR had established a helpline and WhatsApp facility for complaints and would also initiate an open-court mechanism to provide another platform for taxpayers to raise their issues.

Fiza Batool emphasized that the dignity and respect of businesspeople was important and said that taxpayers should not face unnecessary harassment. She explained that special safeguards had been incorporated into the small shopkeepers scheme, including the provision of a green plate, under which field teams would generally not enter a registered business premises unless a major anomaly was identified, in which case the Chamber would also be approached.

She said the special procedure had been introduced in response to a longstanding demand of the business community and retailers for a fixed and simplified tax regime. The scheme, she added, was voluntary and provided an alternative to the normal tax return system.

Explaining the salient features, she said the scheme followed the principle of “One Page, One Return, One Percent” and required minimum information from eligible traders. The tax would be calculated at 1% of turnover, subject to a minimum liability of Rs25,000.

She encouraged existing taxpayers and business organizations to create awareness among traders who were not currently filing tax returns and urged them to take advantage of the opportunity to declare their income and become part of the tax system through the simplified regime.