FBR to target big retailers in posh areas under revised policy

KARACHI: The Federal Board of Revenue (FBR) has decided to make significant changes to its Tajir Dost Scheme for registering shopkeepers and retailers in Pakistan.

According to Business Recorder, instead of the earlier policy which imposed a fixed tax on every shop the FBR will now focus on registering big retailers and traders based on data analysis including their tax returns, electricity usage and stock verification.

Under the revised scheme big shops will be registered using credible information on tax evasion and concealment of income rather than through physical surveys of markets. The FBR has suspended its door-to-door surveys and the practice of charging a fixed tax per shop regardless of size.

This decision was made during a meeting between FBR officials and Muhammad Naeem Mir, Chief Coordinator of the Tajir Dost Scheme 2024. Mir said that FBR has recognised there is little benefit in pursuing small traders as they contribute only a negligible amount to the national revenue. He said that the FBR will now focus on wholesale markets and retail shops in posh areas.

The FBR plans to determine the tax obligations of larger retailers and wholesalers by analysing their electricity usage and stock data, along with the tax returns they file. This approach is expected to help the FBR meet its Rs50 billion target by focusing on retailers with significant tax liabilities or concealed income.

The FBR has already begun reviewing the records of traders who have filed nil returns and those whose stock positions may not match their commercial electricity consumption data. Naeem Mir also confirmed that the registration of smaller shopkeepers is no longer a priority under the new scheme which will concentrate on traders with potential for higher revenue collection.

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