LAHORE: The Federal Board of Revenue (FBR) will initiate tax collection under the newly proposed Tajir Dost Scheme for small traders and shopkeepers starting on July 15, 2024.
Monthly advance tax payments will begin on July 1, 2024, with the first payment due on July 15, 2024. Subsequent payments will be due on the 15th of each following month. Payments can be made conveniently through a dedicated computerized system using a Payment Slip ID (PSID) generated by the Tajir Dost module or the FBR’s online portal.
Introduced under SRO 420(I)/2024 and leveraging Section 99B of the Income Tax Ordinance, 2001, the Tajir Dost Scheme, 2024 aims to support traders and shopkeepers operating through fixed locations like shops, stores, warehouses, and offices within specified territorial limits, including cantonments in major urban centers.
The scheme excludes companies or units of national or international chain stores with operations spanning multiple cities, as determined by the FBR. Additionally, specific individuals or classes of persons excluded by the FBR are not covered under this initiative.
Scheduled for implementation from July 1, 2024, the Tajir Dost Scheme mandates that all eligible traders and shopkeepers register under Section 181 of the Income Tax Ordinance, 2001 by April 30, 2024. Registration can be completed online through designated platforms like the Tax Asaan app or the FBR portal, or in person at FBR’s Tax Facilitation Centers.
The Commissioner Inland Revenue can register non-compliant individuals as per Section 182 of the Ordinance, with penalties applicable to non-compliant traders or shopkeepers.
Under the scheme, traders and shopkeepers will make monthly advance tax payments, serving as a minimum tax on income derived from covered businesses. The FBR will determine the specific calculation method for monthly advance tax.
For those with zero computed advance tax, a minimum annual advance tax of Rs 1,200 applies, excluding income exempted under any provision of the Ordinance.
The scheme offers a 25% reduction in advance tax payable if the entire remaining advance tax for the relevant tax year is paid in a lump sum before the due date, or if income tax returns for the tax year 2023 are filed before the due date for the first monthly installment.
Initially launched in six major cities (Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar), the Tajir Dost Scheme holds potential for future expansion.
The introduction of the Tajir Dost Scheme underscores the FBR’s commitment to supporting small businesses by providing a simplified tax regime to encourage compliance and bolster the country’s economic development.
