The Fixed Tax “Asaan” Scheme for Shopkeepers
One page. One return. One percent.
FBR has notified a simplified, voluntary tax regime for small retailers under SRO 1166(I)/2026. It replaces the normal regime with a flat 1% of turnover, removes the point-of-sale and digital invoicing requirements, and takes you out of routine audit. This page sets out who qualifies, what you get, how to register — and the one calculation to do before you opt in.
What the Scheme Is
The scheme is an alternative to the normal income tax regime, not an addition to it. Instead of computing taxable income in the usual way, an eligible retailer pays 1% of gross turnover, subject to a minimum of Rs 25,000 for the year. FBR describes it as “One Page, One Return, One Percent”.
It is entirely voluntary. A shopkeeper who is better off under the normal regime can stay there. Nothing forces a move either way, which is exactly why the decision is worth checking rather than assuming.
The Rate
- 1% of gross turnover for the year
- Or Rs 25,000, whichever is higher — payable in cash with the return
- Withholding tax already deducted is adjusted against the 1% figure first
- Excess withholding is not refundable under the scheme
Who Qualifies
- Individual retailers with a physical business premises
- Annual turnover up to Rs 200 million
- Open to existing filers and to those registering for the first time
- Shop income only — other sources of income stay outside the procedure
- The procedure as notified applies for tax year 2026
Who Does Not
- Turnover above Rs 200 million in any of the preceding three years
- Owners of more than one shop
- Tier-1 retailers, jewellers and professionals
- Kiosk and pushcart traders
What You Get in Return
- No point-of-sale machine and no mandatory digital invoicing
- Exemption from routine audit
- Active Taxpayer List status, and the lower withholding rates that come with it
- A QR-coded plate for the shop, issued on registration
- Simplified records — sales, purchases and expenses
- A single-page return rather than the full filing
The Calculation to Do Before You Opt In
The scheme taxes turnover, not profit. That single fact decides whether it helps you or costs you.
A shop turning over a large volume on thin margins can pay more under a flat 1% than it would under the normal regime, where tax follows actual profit. A shop with healthy margins on modest turnover can pay considerably less. Two businesses on the same street, with the same sales, can reach opposite conclusions.
The minimum matters too. At Rs 25,000, any business with turnover below Rs 2.5 million pays that minimum rather than 1% — so for the smallest shops the effective rate is higher than one percent, not lower.
Two worked examples. A shop turning over Rs 1.2 million a year: 1% is Rs 12,000, but the minimum applies, so the tax is Rs 25,000 — an effective rate of just over 2%. A shop turning over Rs 20 million: 1% is Rs 200,000, and if Rs 50,000 has already been withheld at source, Rs 150,000 goes with the return. Where the deduction is large enough to bring the balance under Rs 25,000, the minimum still has to be paid in cash.
We work out both figures from your own sales and expense records and show you the comparison before anything is submitted. Opting in is a decision about your numbers, not a recommendation that applies to every shop.
Work Out Your Fixed Tax
Enter your annual turnover. This follows the order the procedure sets out: 1% of gross turnover, less any tax already withheld, and then the Rs 25,000 minimum applied to what is left.
- 1% of gross turnover
- —
- Less tax already withheld
- —
- Left after withholding
- —
- Minimum payable in cash
- Rs 25,000
- Which one applies
- —
- Effective rate on turnover
- —
- Works out at, per month
- —
The order matters. Withholding comes off the 1% figure first, and the Rs 25,000 minimum is then applied to what remains — so a large deduction at source does not take your payment below Rs 25,000. This is the arithmetic of the procedure only; whether it leaves you better off than a normal return depends on your actual profit, which is the comparison we run before anyone opts in. An estimate, not tax advice.
How to Register
There are four routes. All of them lead to the same registration.
The Asaan Tajir App
FBR’s mobile application, launched in August 2026. A short Urdu-language form issues a PSID, and the tax can be paid through the app.
The Iris Portal
The standard FBR portal, if you are already enrolled and comfortable working in it.
A Tax Office
In person at an FBR facilitation counter. FBR has also set up a helpline and a WhatsApp facility for queries and complaints.
Through Us
We check eligibility, run the comparison against the normal regime, register you and file the return.
What Happens If You Do Neither
The penalties are not for declining the scheme. They apply to a shopkeeper who neither files a normal return nor opts into the scheme by the due date — in other words, to staying outside both.
- Rs 10,000 on the first default
- Rs 25,000 on the second default
- Rs 50,000 on the third default
- At least one month between each default proceeding
You may see these figures quoted elsewhere as a recurring monthly charge, or the third default given as Rs 51,000. The reported structure is per default, with a minimum gap of one month between proceedings. Filing a normal return keeps you outside these penalties entirely, whether or not you join the scheme.
Questions Shopkeepers Ask
Is the scheme compulsory?
No. It is voluntary. You can continue filing under the normal regime if that suits your figures better.
I have two shops. Can I opt in?
No. Owners of more than one shop are excluded, as are tier-1 retailers, jewellers and professionals.
Does this cover sales tax as well?
No. It is a simplified income tax regime. Sales tax obligations, where they apply, are separate — and for services supplied in Punjab the Punjab Revenue Authority applies rather than FBR. We confirm which authority applies to your business before registering you anywhere.
Do I still need a POS machine?
Not under this scheme. Point-of-sale integration and mandatory digital invoicing are among the requirements it removes.
What is the plate for?
Registered shopkeepers are issued a QR-coded plate for display at the premises, identifying the business as registered under the scheme.
What records do I have to keep?
Simplified records of sales, purchases and expenses. Considerably lighter than the normal regime, but not nothing — the turnover figure you declare has to come from somewhere.
Find Out Which Regime Leaves You Better Off
Tell us your annual sales and roughly what your margins look like, and we will work out what you would pay under each regime before you commit to either.
The scheme is made under Section 99B read with sub-section (1) of Section 237 of the Income Tax Ordinance, 2001. The draft procedure was notified as S.R.O. 1109(I)/2026 on 14 July 2026 and the scheme as S.R.O. 1166(I)/2026 on 29 July 2026. Figures above reflect FBR and press material published to September 2026. Thresholds, rates, eligibility rules and procedures change — current official material is checked before anything is filed or opted into on your behalf. This page is general information, not advice on your particular circumstances.
Official sources: FBR — S.R.O. 1166(I)/2026 (PDF)