Islamabad: In a major initiative to register 3.2 million shopkeepers and traders, the Federal Board of Revenue (FBR) has expanded the Tajir Dost Scheme to 42 cities, including Faisalabad and Sialkot, as reported on July 10.
According to the sources, nearly 46,000 traders and shopkeepers have already registered under this scheme. Faisalabad, which was initially excluded, is now included. During a recent video conference between the FBR Chairman, Regional Tax Offices, and traders, the business community agreed to expand the scheme’s scope before introducing any new taxes on traders. The registration process will now commence in cities such as Multan, Mardan, Sukkur, Sahiwal, Sargodha, DG Khan, and Gujrat, covering almost all major and minor cities under the Tajir Dost Scheme. The FBR will soon issue a draft notification on the proposed tables of indicative income based on commercial property valuation tables, expected to be finalised by July 15. Traders in each city will have the opportunity to submit their comments on the draft SROs.
During the meeting, most traders rejected the FBR’s proposed tax scheme based on property values, threatening to strike. A deadlock ensued as retailers struggled to propose an alternative taxation formula.
“There was also an exchange of harsh words between the traders and tax officials on payment of taxes, and some trader representatives issued threats during the online meeting,” sources said.
Muhammad Naeem Mir, Chief Coordinator of Tajir Dost Scheme-2024, intervened and proposed two options.
Firstly, he suggested a simplified tax return form for traders, with a fixed registration fee of PKR 1,200. Tier-II retailers would self-assess their turnover, file the simplified return form, and pay turnover tax. However, the FBR rejected this proposal, citing the need to issue the notification by July 15.
Secondly, Mir proposed that the FBR should not issue any SRO immediately and instead determine indicative values of commercial properties in consultation with traders and field offices. He emphasized the importance of issuing notifications in collaboration with trader representatives.
