Tajir Dost Scheme Accelerates Tax Registration Drive

Tajir Dost Scheme Accelerates Tax Registration Drive

Islamabad, May 26, 2024 – In a significant stride towards broadening Pakistan’s tax base, the Federal Board of Revenue (FBR) has reported a surge in tax registrations under the Tajir Dost Scheme.

As of May 25, 2024, a total of 18,371 retailers have been successfully registered, marking a robust response to the initiative.

The FBR’s latest statement reveals that 14,472 retailers registered directly through the Tajir Dost Scheme, while an additional 3,899 retailers were registered via other channels. This scheme has particularly resonated in major cities, with Karachi leading the tally at 5,303 registrations. Lahore follows closely with 5,112, and Islamabad accounts for 1,567. Other notable contributions include 2,138 from Rawalpindi, 1,534 from Peshawar, and 980 from Quetta, with 1,737 registrations from various other cities.

Designed to streamline the tax registration process for shopkeepers and traders, the Tajir Dost Scheme aims to simplify compliance and facilitate the acquisition of a National Tax Number Certificate. This can be obtained through the FBR’s Tax Asaan app, its online portal, or at designated Tax Facilitation Centers. Such measures are pivotal for capturing a broader spectrum of business activities within the formal tax net, ultimately expanding the nation’s tax base.

A cornerstone of the scheme is the “Tajir Dost (Special) Procedure, 2024,” set to take effect on July 1, 2024. Under this procedure, small traders registered with the scheme will be required to make minimum monthly advance tax payments. These payments will be processed using a Computerized Payment Receipt through the Payment Slip ID (PSID), ensuring a streamlined and documented payment process.

The legislative underpinnings of the Tajir Dost Scheme are outlined in the FBR’s SRO 457(I) 2024. This comprehensive document details the procedural compliance requirements and specifies the business categories affected. It follows the initial announcement made in Notification S.R.O. No. 420(l) 2024 on March 21, 2024.

The scheme adopts a broad definition of “shopkeeper,” encompassing a diverse range of business activities conducted at fixed premises. This includes wholesale and retail operations, manufacturing, and importing, within the specified cities’ limits. By adopting this inclusive approach, the FBR ensures that a wide array of businesses are encouraged to formalize their operations, thereby enhancing revenue collection and promoting economic transparency.

The Tajir Dost Scheme’s momentum underscores the effectiveness of the FBR’s efforts to integrate more businesses into the formal economy. As the registration numbers continue to rise, this initiative stands as a testament to the government’s commitment to fostering a more comprehensive and compliant tax environment in Pakistan.