FBR Green Plate Scheme 2026: How Small Shopkeepers Can Pay Just 1% Tax and Skip Audits
On July 27, 2026, FBR quietly launched a new voluntary tax scheme that lets small retailers pay just 1% of gross turnover โ and get a “Green Plate” QR code that legally bars tax officers from walking into their shop. Here is who qualifies, what it costs, and how to register before FBR comes knocking.
The scheme was created under S.R.O. 1166(I)/2026 and sits inside section 99B of the Income Tax Ordinance, 2001. It is targeted at the small kirana store, the mobile-shop owner, the ladies-boutique stall โ the millions of retailers who currently sit outside the tax net and live in fear of an FBR raid. If you have been a non-filer because the paperwork looked impossible, this is the on-ramp FBR has been promising for years.
Who can opt in to the Green Plate
The scheme is broad on purpose, but it excludes a few specific categories to keep it honest.
You can apply if you are
- An individual earning income mainly through one or more retail shops.
- A shop owner with annual gross turnover up to PKR 200 million across all retail outlets you control.
- A retailer selling physical consumer goods directly to end customers.
- Someone with no prior tax-default history that disqualifies you (e.g., a clean record or pre-existing settlement).
You cannot apply if you
- Own or operate more than one branded retail chain (multi-shop owners are out).
- Are a tier-1 retailer (large-format supermarkets, registered chain stores).
- Sell primarily jewelry, gold, or precious stones.
- Provide professional services (lawyers, doctors, accountants, consultants โ this is retail-only).
- Exceeded the Rs 200m turnover threshold in any of the last three years โ the rule looks back, not just at the current year.
What you actually pay
The maths is intentionally simple. There is no slab calculation, no deduction hunt, no advance-tax schedule.
| Component | Amount |
|---|---|
| Tax rate | 1% of gross turnover (sales, not profit) |
| Minimum cash tax | PKR 25,000 per year |
| Filing method | IRIS portal, FBR mobile app, or designated tax office |
| Audit risk | Generally exempt (except third-party info triggers) |
| POS / digital invoicing | Not required under the scheme |
Example: a shop with Rs 8 million in annual sales pays Rs 80,000 in tax (1% of 8m). A shop with Rs 1.5 million in sales still pays the minimum Rs 25,000 because 1% of 1.5m is only Rs 15,000.
How to register (step-by-step)
- Open the IRIS portal at iris.fbr.gov.pk (or the FBR mobile app) and log in with your CNIC.
- Navigate to Voluntary Schemes โ Small Retailer Procedure (Section 99B).
- Enter your shop details: address, NTN (or apply for one in the same flow), gross turnover for the current year, and the CNIC of the proprietor.
- Pay the calculated tax (or the Rs 25,000 minimum) through any FBR-recognised bank or 1Link channel.
- Once payment is confirmed, FBR issues the Green Plate digitally and via post. Print it. Display it at your shop entrance.
What happens if you don’t opt in
FBR has built a stick to go with the carrot. Non-filers in retail who skip the scheme face escalating surcharges on first default:
| Default | Surcharge |
|---|---|
| 1st time caught non-filing | PKR 10,000 |
| 2nd consecutive default | PKR 25,000 |
| 3rd consecutive default | PKR 50,000 |
Frequently asked questions
What is the FBR Green Plate scheme?
It is a voluntary tax procedure launched under S.R.O. 1166(I)/2026 on July 27, 2026, allowing small retailers to pay 1% of gross turnover (minimum Rs 25,000) and receive a QR-coded “Green Plate” that exempts them from FBR tax inspections.
Who is eligible for the 1% retailer scheme?
Individuals earning income mainly through retail shops with annual gross turnover up to PKR 200 million and no disqualifying history. Multi-shop owners, tier-1 retailers, jewelry sellers, and service providers are excluded.
Do I need to install POS to qualify for the Green Plate?
No. One of the main benefits is that participants are exempt from POS and digital-invoicing requirements under the scheme. The Green Plate is essentially FBR’s trade โ you pay the 1%, FBR does not impose the tech stack.
What is the minimum tax I have to pay under the scheme?
PKR 25,000 in cash per year, even if your 1% of turnover is lower. If your turnover is high enough that 1% exceeds the minimum, you pay the higher figure.
Can I opt out of the Green Plate later?
Yes, but you then fall back into the normal tax regime โ full slabs, withholding, POS requirements, and the audit risk that comes with them. Most small retailers will stay in the scheme indefinitely.
What if my turnover crosses PKR 200 million?
You are no longer eligible from the moment you cross the threshold. You must exit the scheme and file under the normal regime. FBR uses a 3-year look-back, so a one-off spike is also disqualifying.
Where do I get the Green Plate after paying?
FBR issues it digitally on IRIS and posts a physical copy to your shop address. Print the digital version and display it at your entrance while you wait for the hard copy.
