In a bid to provide relief to small-scale retailers and traders, the Federal Board of Revenue (FBR) has announced a significant tax adjustment on electricity bills.
This move comes as part of the newly launched Tajir Dost Scheme, aimed at facilitating shopkeepers and small traders across Pakistan.
The FBR unveiled the facilitation guide for the Tajir Dost Scheme on Thursday, outlining the provisions for tax adjustments on electricity bills. Under this scheme, registered shopkeepers and traders will have the opportunity to offset the tax deducted from their electricity bills against their tax liabilities.
The scheme extends its benefits to various types of businesses, including wholesalers, retailers, and dealers such as general stores, medical outlets, and furniture shops. However, it’s important to note that the initiative excludes companies or national and international chain stores operating in multiple cities.
Existing shopkeepers and traders already registered with the tax department need not undergo another registration process. However, they are required to comply with the advance income tax payment stipulations under the Tajir Dost Scheme, effective from July 1, 2024.
The payment process under the Tajir Dost Scheme has been clearly delineated by the FBR. Traders and shopkeepers are expected to remit advance tax payments on a monthly basis. Additionally, those traders subject to quarterly advance income tax payments can adjust the tax already paid while fulfilling their quarterly tax obligations.
The FBR emphasized that the Tajir Dost Scheme solely pertains to income tax obligations. Traders necessitated to register for sales tax purposes will need to pursue a separate sales tax registration.
Importantly, the registration of Point of Sale (POS) terminals is not obligatory under the Tajir Dost Scheme. However, it remains a requisite for Tier-1 retailers, elucidating the distinction between the two processes.
This initiative by the FBR aims to alleviate the tax burden on small-scale businesses, fostering an environment conducive to their growth and sustainability. By providing avenues for tax adjustment and simplifying tax procedures, the Tajir Dost Scheme endeavors to promote entrepreneurship and bolster the retail sector in Pakistan.
Furthermore, the scheme underscores the government’s commitment to fostering economic inclusivity and supporting small traders, who play a vital role in the country’s commercial landscape.
In response to the announcement, various stakeholders within the business community have expressed optimism about the potential benefits of the Tajir Dost Scheme. They anticipate that this initiative will not only alleviate financial pressures on small businesses but also streamline tax compliance processes, ultimately contributing to economic resilience and prosperity.
As the Tajir Dost Scheme rolls out, it is expected to garner widespread participation from eligible traders and shopkeepers, further solidifying its impact on Pakistan’s economic trajectory.
