Islamabad (HRNW) — The Federal Board of Revenue (FBR) has launched a new Retailer Scheme App aimed at bringing small shopkeepers and non-filer retailers into the formal tax system through a simplified digital process.
Under the scheme, eligible non-filer shopkeepers will be able to register through their mobile phones, complete their tax-related information, make the required payment and file their tax returns without having to go through lengthy manual procedures.
According to Minister of State for Finance Bilal Azhar Kayani, the scheme provides a simplified mechanism for retailers to become filers. The minimum annual payment under the scheme has been set at Rs25,000.
How will the app work?
Shopkeepers will first download the FBR Retailer Scheme App and enter basic information about their business and shop. After completing the required details, the system will generate a PSID, which will be used for payment of the applicable tax.
Once the required payment has been made, the retailer will complete the return-filing process through the application.
The initiative is designed to allow small traders to handle registration, payment and return filing digitally through their mobile phones.
What happens after filing the return?
Once a shopkeeper successfully completes the required process and files the return, the retailer will become part of the scheme and will be eligible for a Green Plate.
The digital Green Plate will contain identifying information, including the retailer’s NTN, shop details and a QR code, allowing the tax status of the business to be verified.
A physical Green Plate will also be available through the relevant FBR office. According to the announced procedure, the physical plate may take around two weeks to become available.
What are the benefits of the Green Plate?
One of the key incentives under the scheme is exemption from the Point of Sale (POS) requirement.
The government has also stated that FBR officials will not enter a shop displaying the Green Plate for routine tax inspection under the scheme. The facility, however, remains subject to the applicable terms and conditions of the retailer scheme.
The Green Plate should therefore not be interpreted as a blanket exemption from all taxation or legal requirements. Retailers will still be required to provide accurate information and comply with the obligations attached to the scheme.
The government hopes the digital initiative will encourage a greater number of small traders to enter the formal tax system while reducing the administrative burden associated with registration and tax return filing.
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