ISLAMABAD – The Federal Board of Revenue (FBR) has declared that tax collection under the newly planned Tajir Dost Scheme for small dealers and retailers would begin on July 15, 2024.
The initiative, which was first implemented in six major cities, including Islamabad, Rawalpindi, Karachi, Lahore, Quetta, and Peshawar, has the potential for further development. The Tajir Dost Scheme’s 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 month, allowing for convenient payments through a specialized computerized system utilizing a Payment Slip ID (PSID) created by the Tajir Dost module or the FBR’s web site, according to a private news station.
Traders and merchants that participate in the plan will be required to make monthly advance tax payments, which serve as a minimum tax on income generated by covered businesses. The FBR will outline the mechanism for calculating monthly advance tax in order to create a streamlined tax system that encourages compliance and supports the country’s economic progress.
The Tajir Dost Scheme, launched under SRO 420(I)/2024 and based on Section 99B of the Income Tax Ordinance, 2001, intends to assist merchants and shopkeepers who operate from permanent sites such as shops, stores, warehouses, and offices within defined territorial limits. However, the program excludes enterprises or components of national or international chain stores that operate in many locations, as defined by the FBR.
Section 181 of the Income Tax Ordinance, 2001 requires all eligible dealers and shopkeepers to register by April 30, 2024, with implementation beginning July 1, 2024. Registration can be done electronically using specified platforms such as the Tax Asaan app or the FBR portal, or in person at the FBR’s Tax Facilitation Centres. Non-compliant people may be registered by the Commissioner of Inland Revenue under Section 182 of the Ordinance, with fines imposed on non-compliant dealers or shops. For individuals with zero calculated advance tax, a minimum yearly advance tax of Rs 1,200 applies, excluding income exempt from any provision of the Ordinance.