ISLAMABAD: The government wants to increase income production and document the enterprises in the nation, therefore the Federal Board of income (FBR) has established the Tajir Dost Scheme 2024 to bring small dealers and shops into the tax net.
The top tax body has also released an SRO in this regard, declaring that all traders and shopkeepers operating through a fixed place of business—a store, shop, warehouse, office, or other physical location—located within the territorial civil limits, including cantonments, will be registered under the scheme. These individuals are referred to as business premises.
In Karachi, Lahore, Peshawar, Quetta, Islamabad, and Rawalpindi, the scheme is aimed at wholesalers, dealers, retailers, jewellery stores, grocery stores, medical supply stores, hardware stores, meat shops, vegetable and fruit outlets, car showrooms, and dealers of chemicals, fertiliser, and pesticides.
Additionally covered by the programme are manufacturer-retailers, importer-retailers, and people who engage in other supply chain-related business ventures in addition to combining retail and wholesale operations.
Following a reported income of about Rs850 billion on Friday, a subset of tax offices and bank branches will be open on weekends to ensure tax compliance and fulfil the monthly target of Rs879 billion for tax collection for March.
Shopkeepers and traders can register under Section 181 of the Income Tax Ordinance 2001 by going to FBR’s tax facilitation centres, via the Tax Asaan App, or on the FBR website.
Tax collection starts on July 1st, and the registration process opens on April 1st. Section 182 of the Income Tax Ordinance 2001 stipulates that there will be financial penalties for failure to register by the deadline of April 30.
In addition to a 25% reduction on monthly advance tax payments for non-filers who file their tax returns for the tax year 2023 before the July 15 deadline for the first installment of monthly advance tax, the plan also gives a 25% discount on monthly advance tax payments if paid in lump sum.
The reduction rises to 50% for individuals who pay the full 12 months’ worth of advance taxes for the tax year 2024 on July 15 in a single payment.
Tajir Dost App FBR (Tax Asaan App)
Any trader or shopkeeper with an Android or iOS device can use the Tax Asaan app to apply for registration in the National Business Registry.
FBR’s Portal
They may also submit an application for registration via the Federal Board of Revenue’s web page.
FBR’s Tax Facilitation Centers
For registration, traders and store owners can also go to the FBR’s Tax Faciliation Centres. They have till April 30 to register for the programme.
According to the announcement, the Commissioner of Inland Revenue will register the merchant or shopkeeper, as applicable, if the person who is obliged to be registered does not request for registration.
On July 1, 2024, the second section of the SRO pertaining to the payment of minimal advance tax will go into effect.
“Everyone shall be responsible for paying the advance tax each month in line with this paragraph.
The minimum tax on income from the business covered by this scheme shall be the advance tax paid under subparagraph (1).
For a given tax year, the monthly advance tax amount is calculated according to any applicable regulations.
The advance tax payable under subparagraph (1) will be Rs. 1,200 annually in the event that the advance tax computed under subparagraph (3) is nil. With the caveat that sub-paragraph (1) will not apply if the person’s income is exempt from income tax under any Ordinance provision.
With the additional proviso that the advance tax payable will be lowered by 25% of the entire amount or the balance: (a) in the event that the individual pays the entire amount or the remaining amount, as applicable, of the advance tax for the applicable Tax Year in one single payment. Go through the SRO.
