Karachi, April 1, 2024 – The Federal Board of Revenue (FBR) has initiated a comprehensive income tax registration process targeting shopkeepers and traders in six major cities across Pakistan.
This move, aimed at enhancing tax compliance and formalizing the informal sector, is set to continue till April 30, 2024.
Under the directives issued by the FBR, all traders and shopkeepers are mandated to apply for registration with the Commissioner to acquire a “National Tax Number Certificate” within the stipulated deadline. The application process can be facilitated through the Tax Asaan App, FBR’s online portal, or at designated Tax Facilitation Centers.
A notable feature of this initiative is the introduction of the Tajir Dost (Special) Procedure, 2024, which mandates small traders to initiate minimum monthly advance tax payments starting from July 1, 2024. This payment will be executed through a dedicated Computerized Payment Receipt against the Payment Slip ID (PSID).
To formalize these procedures, the FBR has issued SRO 457(I) 2024, outlining the special regulations for small traders and shopkeepers. The draft of these regulations was initially released via Notification S.R.O. No. 420(l) 2024 on March 21, 2024.
The term “shopkeeper” encompasses various business categories, including wholesalers, dealers, retailers, manufacturer-cum-retailers, importer-cum-retailers, or any individual engaged in retail and wholesale activities within the supply chain of goods.
The Tajir Dost (Special) Procedure, 2024, is applicable to traders and shopkeepers operating from fixed business premises such as shops, stores, warehouses, offices, or similar physical locations within the territorial civil limits, including cantonments, in major cities like Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar.
For those who fail to register within the specified timeframe, the Commissioner Inland Revenue will initiate the registration process on their behalf, as per the FBR’s statement.
Moreover, taxpayers can avail a 25 percent reduction in advance tax payable if they choose to pay the entire remaining advance tax for the relevant tax year in a lump sum before the due dates for payment. Additionally, individuals who have not filed an income tax return for Tax Year 2023 but do so before the due date for the first monthly installment will also benefit from a 25 percent reduction in advance tax payable, according to the FBR.
This initiative underscores a significant stride towards formalizing the informal sector and ensuring greater adherence to tax regulations among shopkeepers and traders nationwide.
The FBR has urged all eligible individuals to promptly complete the registration process within the specified timeframe to avoid any penalties or legal implications.
