Traders urged to join tax net

Published Updated

HYDERABAD: The Hyderabad SITE Association of Trade and Industry has urged shopkeepers and traders to register with the Federal Board of Revenue (FBR) under the Fixed Tax Scheme, saying that compliance will help streamline their businesses, avoid audits, and protect them from unnecessary scrutiny.

Chairman Zubair Ahmed Ghangra, Senior Vice Chairman Aamir Shahab and Vice-Chairman Essar Kumar said the new policy mandates digital invoicing and offers a fixed tax scheme for businesses with up to Rs250 million in turnover, along with “green plates” as proof of compliance, which would exempt registered shops from routine tax visits.

Mr Ghangra told Dawn on Friday that the FBR would ensure digital invoicing is implemented for every businessman under this policy, which aims to achieve integration and digital reforms in the business sector.

“The FBR will issue green plates to each businessman who has met the criteria, and these will serve as evidence of compliance,” said Amir Shahab.

Green plates to shield from FBR audits

He said that if a green plate was displayed, FBR officers would not enter the shop or business premises for tax-related matters.

He said that every trader with an annual turnover of Rs250m would be covered by the scheme and that no audit would be required. “The digital invoicing of business transactions will be reflected on the FBR portal, like any other government department. It will be a relief for small shopkeepers and traders as well, but there is some reluctance on their part,” Mr Shahab remarked.

He was of the view that the FBR has been requested to engage with chambers of commerce to brief the traders and businessmen in this regard for the purpose of clarity.

He added that the FBR has also observed that it could look into past tax issues on a case-by-case basis to find solutions to redress grievances.

The association leaders pointed out that it was important for traders to keep their tax and business matters clear and properly recorded. The digital FBR reforms were aimed at improving the overall tax system, maintaining proper records, and strengthening the country’s economy.

Therefore, they stressed that the business community should avoid relying on outdated methods or incorrect advice and should handle their business and tax matters in accordance with the law.

Mr Ghangra noted that business owners should, as far as possible, purchase goods from registered companies and registered persons. “It will help them maintain proper records of their purchases and sales and bring more transparency to their business dealings,” he said.

He said that under the fixed tax policy, businesses with an annual turnover of up to Rs200m can also join the tax network through a prescribed procedure. This is also a registration facility for traders with lower turnover against the prescribed amount.

He noted that joining a tax network would help traders maintain better business records, deal with registered organisations and benefit from various legal and business facilities.

Published in Dawn, August 15th, 2026

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