Islamabad: The Federal Finance Minister has approved the significant expansion of the Tajir Dost scheme, extending it from 6 to 42 cities across Pakistan, as reported on July 23.
As per details, under the new Tajir Dost Special Rules 2024, the Federal Board of Revenue (FBR) has introduced a fixed tax system for retailers, with rates ranging from Rs100 to Rs10,000 per month. The tax amount depends on the fair market value of the retail space.
The new rules, detailed in a recent FBR notification, establish a commercial fair value for each city. The scheme’s expansion aims to streamline tax procedures and provide clarity for shopkeepers across the country. The notification specifies that “indicative income” will be determined based on factors such as rental value, location, and market value of the property. The term “shopkeeper” encompasses various roles including wholesalers, dealers, retailers, and manufacturers who engage in retail activities.
The updated Statutory Regulatory Order (SRO) now includes additional cities such as Abbottabad, Faisalabad, Karachi, Lahore, Multan, Peshawar, Quetta, and many more. This expansion is part of the government’s effort to enhance tax compliance and support the retail sector.
1- Advance Tax Rates: Fixed advance tax rates are provided based on shop size and location. Retailers with shops of 50 square feet or less in commercial areas will face a fixed annual tax of Rs1,200. 2- Tax Adjustments: Retailers who pay their advance tax in lump sum or file their income tax returns may receive a 25% reduction in their advance tax liability. 3- Enforcement and Penalties: The income tax authority will enforce compliance, with penalties for failing to pay monthly advance tax.
The FBR’s move aims to simplify the tax process and ensure a fair system for retailers across the newly included cities. The official launch date for the expanded scheme will be announced in due course.
