Tajir Dost Scheme launched by FBR to bring retailers into tax net

The government has launched the registration of the Tajir Dost Scheme (Introduced by FBR) in six major cities of Pakistan. The Federal Board of Reserve (FBR) introduced this scheme following the IMF (International Monetary Fund) conditions.

The Tajir Dost Scheme was introduced in the major cities in its initial phase. It includes Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar.

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Retailers will begin registering under the Tajir Dost Scheme on April 1, 2024. However, FBR will begin collecting taxes on July 1st of the same year.

Under this plan, the FBR will also include online marketplace platforms in the tax net. A senior FBR official stated they intend to bring one million retailers into the tax net under Tajir Dost Scheme.

The FBR published a draft special procedure for small traders and shopkeepers. FBR implements this draft under section 99B of the Income Tax Ordinance, 2001 (XLIX of 2001).

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According to the FBR draft, this scheme will apply to traders and shopkeepers who operate from a fixed place of business such as a store, shop, warehouse, or office. It will also apply to other physical places within the territorial civil limits. It includes cantonments in the cities as listed in the schedule of this scheme.

Tajir Dost Scheme will not apply to any individual who is a firm and operates as a branch of a national or international chain store in multiple cities.

All traders and shopkeepers can apply for registration under section 181 of the Ordinance from April 1, 2024 to April 30, 2024. They can apply via the Tax Asaan app, the FBR online, or the FBR Tax Facilitation Centers. The Commissioner of Inland Revenue is responsible for registering a person who needs to be registered, such as a dealer or shopkeeper.