- Tajir Dost Scheme launched in six major cities.
- Tax collection under scheme to begin on July 1.
- Govt intends to bring 1m retailers into tax net.
ISLAMABAD: In a bid to comply with the demand of IMF, the government has launched registration of Tajir Dost Scheme in six major cities of the country, including four provincial capitals and Rawalpindi as well as in Islamabad.
The cities where Tajir Dost Scheme has been launched includes Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar in the first phase.
This step coincided with an announcement by the finance minister that Pakistan was set to launch $300m Yuan-denominated Panda bond and external debt to be paid on time as sufficient foreign exchange reserves are available.
Under Tajir Dost Scheme, the retailers will kick start registration from April 1, 2024 and then the tax collection will take place from July 1, 2024.
The FBR will take online marketplace platform into the tax net as well under this scheme.
“We intend to bring one million retailers into the tax net,” said one top official of the FBR on Friday when contacted by The News.
According to Statutory Regulatory Order (SRO) 420(1)/2024 issued on Friday, the draft special procedure for small traders and shopkeepers which the FBR proposes to prescribe under section 99B of the Income Tax Ordinance, 2001 (XLIX of 2001) was published by the FBR and the board sought objections or suggestions for its consideration within seven days of the publication of the draft in the official gazette.
The draft of Tajir Dost Scheme says: In exercise of powers vested in the FBR under section 99B of the Income Tax Ordinance, 2001 (hereinafter called the Ordinance), the following special procedure for small traders and shopkeepers to be called Tajir Dost Scheme, 2024 (hereinafter called the scheme), is hereby prescribed.
This scheme shall apply to the traders and shopkeepers operating through a fixed place of business including a shop, store, warehouse, office or similar physical place (hereinafter referred to business premises) located within the territorial civil limits including cantonments in the cities as specified in the schedule to this scheme for registration and payment of minimum advance tax.
It shall not apply to a person -being a company or; operating as a unit of national or international chain stores in more than one city or; a person or a class of persons specifically excluded by the board.
The board said scheme shall come into force with effect from April 1, 2024 except Part-II, which shall come into force with effect from July 1, 2024.
It says every trader and shopkeeper shall apply for registration under section 181 of the Ordinance or through Tax Asaan app or on FBR’s portal or through FBR’s Tax Facilitation Centers by 30th day of April, 2024. If a person, who is required to be registered, the Commissioner Inland Revenue shall register the trader or the shopkeeper as the case may be.
About the minimum monthly advance tax payable by a person, it says every person shall be liable to pay monthly advance tax in accordance with this paragraph. The advance tax paid under sub paragraph (1) shall be the minimum tax in respect of income from the business covered under this scheme. The amount of monthly advance tax for a tax year shall be computed in the manner as may be prescribed.
It says: “Where the advance tax computed under sub paragraph (3) is zero, the advance tax payable under the sub paragraph (1) shall be Rs1,200 per annum. Provided that where the income of the person is exempt from income tax under any provision of the Ordinance, sub-paragraph (1) shall not apply. Provided further that the advance tax payable shall be reduced by twenty five percent of the whole or the balance: — if the person pays in lump sum the whole or the balance as the case may be, of remaining advance tax for the relevant tax year on or before any of the due dates for payment of such tax under the said paragraph; or if the person who has not filed income tax return, files income tax return for Tax Year 2023 before the due date for payment of first monthly installment.
“Mode and manner of payment of advance tax. The monthly advance tax payable under paragraph 5 shall be paid with effect from Ist day of July, 2024 for the relevant tax year and the first payment will be due on 15’ of July, 2024 and thereafter on 15’ of every month. The tax payable under paragraph 5 for a tax year shall be paid through a separate Computerized Payment Receipt against the Payment Slip ID (PSID) generated by Tajir Dost module or through FBR’s portal or through FBR’s Tax Facilitation Centers.
The Board with the approval of Minister in Charge may amend the scheme from time to time so as to add, alter, omit or modify any provision therein.
Originally published in The News
