FBR’S TAJIR DOST SCHEME TO KICKSTART FROM APRIL 1
Finance Minister Muhammad Aurangzeb approves initiative, pending notification
THE Federal Board of Revenue (FBR) is initiating the registration process for traders under the Tajir Dost Scheme, aiming to bring five major categories of traders into the tax system. According to a news report, Finance Minister Muhammad Aurangzeb has approved the initiative, pending notification.
The scheme targets wholesalers, dealers, retailers, furniture and decoration showrooms, jewellers, cosmetics stores, grocery, medical and hardware stores, meat shops, vegetables and fruits outlets, motor vehicle showrooms, and dealers of fertiliser, pesticide, and chemicals in Karachi, Lahore, Peshawar, Quetta, Islamabad, and Rawalpindi.
The scheme also covers manufacturer-cum-retailers, importercum-retailers, and individuals involved in combined retail and wholesale activities or other business activities within the supply chain.
To enforce tax compliance, selected tax offices and bank branches will operate on weekends to meet the monthly tax collection target of Rs879 billion for March, following a reported revenue of around Rs850 billion on Friday.
Traders and shopkeepers can register under Section 181 of the Income Tax Ordinance 2001 via the Tax Asaan App, FBR’S web portal, or by visiting FBR’S tax facilitation centers.
The registration process begins on 1, with tax collection effective from July 1. Failure to register by the April 30 deadline will result in monetary penalties under section 182 of the Income Tax Ordinance 2001. The scheme offers a 25% discount on monthly advance tax payment if paid in a lump sum and a 25% discount on monthly advance tax payments for non-filers who submit their tax return for the tax year 2023 before the July 15 deadline for the first installment of monthly advance tax.
For those who make 12 months of monthly advance tax payments for the tax year 2024 in one payment on July 15, the discount increases to 50%.
Registration for the scheme has been simplified, eliminating the need for tax professionals’ assistance.