The initial reaction from the traders’ community towards the Federal Board of Revenue’s (FBR) new Tajir Dost Scheme, 2024 for small traders and shopkeepers has been favorable.
Chairman of the Supreme Council All Pakistan Anjuman Tajran (APAT), Naeem Mir, speaking to Private channel on Sunday, commended the initiative to document unregistered shopkeepers through the Tax Asaan App. However, he emphasized the need to finalize modalities regarding the collection of minimum advance tax on a monthly basis.
Mir highlighted that the use of the Tax Asaan App would simplify the process for traders, eliminating the need to hire lawyers and tax advisers for document completion and registration. He reiterated APAT’s strong support for the registration of the traders’ community without increasing the tax burden on shopkeepers.
Mir expressed optimism that if the market surveys and registration drive conducted by the FBR proceed smoothly, new shopkeepers would willingly join the formal regime.
The FBR’s efforts to register professionals operating outside the tax net were also praised by Mir, who expressed confidence in the functionality of the Tax Asaan App during the registration process nationwide.
Chairman APAT emphasized the importance of determining the amount based on the annual rental value of shops and the “fair market value of business premises.” Additionally, he questioned whether the sales tax collected along with electricity bills from traders would be abolished.
Ajmal Baloch of All Pakistan Anjuman-i-Tajiran stated that the association is studying the details of the scheme and will provide further comments after thorough analysis. Initially, the scheme appears acceptable, he added.
Under the new scheme, the FBR has introduced the “National Business Registry,” a central repository database of small traders and shopkeepers to be registered under the Tajir Dost Scheme, 2024.
According to the SRO 420(I)/2024, the scheme applies to traders and shopkeepers operating through fixed places of business, including shops, stores, warehouses, and offices, within specified city limits.
The scheme excludes companies or units of national or international chain stores operating in multiple cities or any other persons specifically excluded by the Board. It will come into effect from April 1, 2024, with advance tax payments applicable from July 2024.
The FBR outlined that all provisions of the Income Tax Ordinance would apply to persons specified under the scheme regarding income computation, tax collection, and deduction, advance tax liability, and filing tax returns.
Every trader and shopkeeper must apply for registration by April 30, 2024, either through the Tax Asaan app, FBR’s portal, or Tax Facilitation Centers. Monthly advance tax payments will commence from July 1, 2024, with the first payment due on July 15, 2024, and subsequent payments on the 15th of every month.
Advance tax payments can be made through Computerized Payment Receipts generated by the Tajir Dost module or FBR’s portal or Tax Facilitation Centers.
