FBR Registers 17,384 Traders Under Tajir Dost Scheme

FBR Registers 17,384 Traders Under Tajir Dost Scheme

Islamabad, May 24, 2024 – The Federal Board of Revenue (FBR) announced on Friday that it has successfully registered 17,384 traders under its Tajir Dost Scheme as of May 23, 2024.

This initiative aims to incorporate more traders into Pakistan’s formal economy by targeting those operating in six major cities: Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar.

FBR spokesperson Bukhtiar Muhammad disclosed the regional registration figures, noting that 5,173 traders have enrolled from Karachi, 4,871 from Lahore, and 1,406 from Islamabad. Additionally, 1,944 traders from Rawalpindi, 1,409 from Peshawar, and 899 from Quetta have joined the scheme.

The Tajir Dost Scheme is designed to simplify the tax registration process for shopkeepers and traders. These individuals are required to register with the FBR to obtain a National Tax Number Certificate, a step facilitated through the FBR’s Tax Asaan app, its online portal, or at designated Tax Facilitation Centers. This integration is crucial for expanding the tax base and ensuring that more business activities are captured within the formal tax net.

A significant feature of the scheme is the introduction of the “Tajir Dost (Special) Procedure, 2024.” From July 1, 2024, small traders enrolled in the scheme will be mandated to make minimum monthly advance tax payments. These payments will be processed via a Computerized Payment Receipt using the Payment Slip ID (PSID), streamlining the payment process and ensuring proper documentation.

The legislative framework supporting this scheme was articulated in the FBR’s SRO 457(I) 2024. This document, which outlines procedural compliance requirements and the specific categories of businesses affected, followed the initial announcement in Notification S.R.O. No. 420(l) 2024 on March 21, 2024.

The definition of “shopkeeper” under this scheme is intentionally broad, encompassing a variety of business activities conducted at fixed premises. This includes wholesale and retail operations, manufacturing, and importing, all within the specified cities’ territorial limits. The comprehensive approach ensures that a wide array of business types are encouraged to formalize their operations, thereby broadening the tax base and enhancing revenue collection.

With this significant uptake, the FBR’s Tajir Dost Scheme marks a pivotal step towards formalizing Pakistan’s economy and increasing tax compliance among small traders.