Islamabad: The Federal Board of Revenue (FBR) is considering a new registration scheme for shopkeepers and traders after the limited success of the Tajir Dost Scheme, Business Recorder reported. The new initiative could be introduced in the 2025-26 federal budget to improve tax documentation and broaden the tax base.
However, Muhammad Naeem Mir, the chief coordinator of the Tajir Dost Scheme, has questioned the need for a new plan. He argued that existing tax measures, including Sections 236G and 236H of the Income Tax Ordinance 2001, have already reduced advance tax rates for registered traders, incentivizing compliance. He suggested that the FBR could boost revenue collection more effectively by enforcing tax return filing using data from these sections rather than launching another scheme.
Despite the shortcomings of the Tajir Dost Scheme, which registered around 70,000 to 75,000 retailers, the FBR has made progress in integrating large retailers into the tax net. By March 2025, 9,834 major retailers, including 738 restaurants and 506 leather and textile businesses, had joined the Point of Sales (POS) system. The FBR’s focus remains on registering larger businesses, while smaller shopkeepers are not an immediate priority.
As the government finalizes the upcoming federal budget, the fate of the proposed trader registration scheme remains uncertain. Industry stakeholders continue to debate whether a fresh initiative is needed or if existing tax enforcement mechanisms should be strengthened instead.
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