Karachi, March 30, 2024 – The Federal Board of Revenue (FBR) has taken a significant step towards facilitating small traders and shopkeepers with the issuance of SRO 457(I)/2024 to implement the Tajir Dost (Special) Procedure, 2024.
This move aims to streamline tax procedures for small businesses and enhance compliance within the sector.
The scheme, which will come into effect from April 1, 2024, was initially introduced for small traders and shopkeepers in six major cities: Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar. It focuses on simplifying the tax process for those operating through fixed places of business within these urban centers.
According to the provisions outlined in the SRO, the Tajir Dost scheme applies specifically to traders and shopkeepers operating within the specified territorial civil limits, including cantonments, in the designated cities. However, certain entities are excluded from the scheme, such as companies, units of national or international chain stores spanning multiple cities, and other classes of persons determined by the Board.
One of the key aspects of the scheme is the registration process, which mandates every eligible trader and shopkeeper to apply for registration under section 181 of the Income Ordinance, 2001, or through designated channels such as the Tax Asaan App or FBR’s online portal. Failure to apply for registration by the specified deadline will result in the Commissioner Inland Revenue initiating the registration process on behalf of the trader or shopkeeper.
The SRO also specifies the minimum monthly advance tax payable by eligible persons, which will serve as the minimum tax for income derived from the covered business activities. Additionally, it outlines the mode and manner of payment for the advance tax, with the first payment due on the 15th day of July, 2024, and subsequent payments on the 15th day of every month.
Furthermore, the SRO empowers the Board, with the approval of the Minister in Charge, to amend the Tajir Dost scheme as needed to enhance its effectiveness and relevance over time.
This initiative by the FBR reflects the government’s commitment to fostering a conducive environment for small businesses and promoting tax compliance among traders and shopkeepers. By simplifying tax procedures and providing a structured framework, the Tajir Dost scheme is expected to contribute to the growth and formalization of the small business sector in Pakistan.
