Karachi, April 5, 2024 – Shopkeepers and traders enrolled in the newly launched Tajir Dost Scheme are required to pay super tax and tax on deemed income, as outlined by the Federal Board of Revenue (FBR) through the Tajir Dost (Special) Procedure, 2024.
Introduced via SRO 457(I)/2024 dated March 30, 2024, the Tajir Dost Scheme incorporates provisions from the Income Tax Ordinance, 2001, tailored specifically for individuals specified under the special procedure.
Key levies under the scheme include the imposition of super tax and tax on deemed income, applicable to shopkeepers and traders deriving income under these categories.
Under Section 4C of the Income Tax Ordinance, 2001, which was incorporated through the Finance Act, 2002, super tax is levied on the income of every individual starting from the tax year 2022 onwards.
Similarly, Section 7E, introduced via the Finance Act, 2022, imposes tax on deemed income. According to this section, a resident person is deemed to have derived income chargeable to tax equal to five percent of the fair market value of capital assets situated in Pakistan held on the last day of the tax year.
The Tajir Dost Scheme’s special procedure stipulates that, alongside the specified provisions, all other provisions of the Income Tax Ordinance, 2001, shall apply to the individuals covered under the scheme. This includes the computation of income, tax payable, collection and deduction of tax, advance tax liability, and other relevant sections of the ordinance.
Furthermore, shopkeepers and traders liable to pay super tax and tax on deemed income must adhere to the regulations outlined in chapters IX, X, XI, XII, XIII of the Income Tax Ordinance, 2001, and the schedules thereto, as specified under the Tajir Dost Scheme.
The implementation of the Tajir Dost Scheme reflects the government’s commitment to streamline tax procedures and provide support to small businesses in Pakistan. By introducing tailored tax measures, the scheme aims to facilitate compliance among shopkeepers and traders while promoting a conducive environment for business growth and development.
As shopkeepers and traders navigate the tax landscape under the Tajir Dost Scheme, adherence to the prescribed regulations is essential to ensure compliance and avoid any penalties or legal repercussions. The scheme underscores the importance of fostering a collaborative approach between businesses and regulatory authorities to achieve mutual growth and prosperity in the economic landscape of Pakistan.
