Karachi, April 30, 2024 – Today marks the final call for shopkeepers and small traders across Pakistan to register under the newly launched Tajir Dost Scheme. The Federal Board of Revenue (FBR) introduced this initiative at the start of April 2024, providing a one-month window, which concludes today, for mandatory registration.
Aimed at integrating more traders into the formal economy, the scheme targets those operating in six major Pakistani cities: Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar. Shopkeepers and traders are required to register with the FBR to obtain a National Tax Number Certificate, a process facilitated through the FBR’s Tax Asaan app, its online portal, or at designated Tax Facilitation Centers.
A critical aspect of the Tajir Dost Scheme is the introduction of the “Tajir Dost (Special) Procedure, 2024.” Starting from July 1, 2024, enrolled small traders will need to begin making minimum monthly advance tax payments. These payments are to be made via a Computerized Payment Receipt using the Payment Slip ID (PSID), ensuring a streamlined and documented tax process.
The legislative framework for this scheme, including specifics on procedural compliance and categories of businesses affected, was outlined in the FBR’s SRO 457(I) 2024, issued following the initial announcement in Notification S.R.O. No. 420(l) 2024 on March 21, 2024.
The definition of “shopkeeper” within the context of this scheme is broad, capturing a range of business activities from wholesale and retail to manufacturing and importing that are conducted at fixed business premises. This includes shops, stores, warehouses, and offices within the specified cities’ territorial limits.
For those who miss today’s deadline for registration, the FBR has stated that the Commissioner Inland Revenue will take steps to register them compulsorily. However, to encourage timely compliance and registration, the FBR has offered incentives: taxpayers who pay their entire remaining advance tax for the year in one lump sum before the due payment dates can enjoy a 25 percent reduction in the amount due. Similarly, traders who failed to file an income tax return for Tax Year 2023 but do so before the deadline for the first monthly installment will also receive a 25 percent reduction in advance tax payable.
The FBR has emphasized that the Tajir Dost Scheme is a significant move towards the formalization of the informal sector and will help ensure greater tax compliance among the nation’s shopkeepers and traders. With today as the last chance to register without facing penalties, the FBR is urging all eligible business owners to complete their registration promptly to avoid any legal repercussions.
