FBR introduces scheme to bring major traders into tax net

WEB DESK: The Federal Board of Revenue (FBR) is launching the Tajir Dost Scheme to bring five major categories of traders into the tax system.

The scheme targets wholesalers, retailers, furniture and decoration showrooms, jewellers, cosmetics, grocery, medical, and hardware stores, meat and produce shops, vehicle showrooms, and chemical dealers in major cities like Karachi, Lahore, Peshawar, Quetta, Islamabad, and Rawalpindi.

This initiative, approved by Finance Minister Muhammad Aurangzeb, aims to register manufacturer-cum-retailers, importer-cum-retailers, and other individuals involved in retail and wholesale activities.

To apply, unregistered traders and shopkeepers can use the Tax Asaan App, FBR’s web portal, or visit FBR’s tax facilitation centres under Section 181 of the Income Tax Ordinance 2001.

Starting April 1, the scheme will enforce tax collection from July 1. Those failing to register by April 30 will face penalties under Section 182 of the Income Tax Ordinance 2001.

Benefits include a 25 per cent discount on monthly advance tax payments if paid in a lump sum and an additional 25 per cent discount for non-filers who file their tax return for 2023 before July 15. This discount increases to 50 per cent for those making 12 months of monthly advance tax payments for the tax year 2024 on July 15.

Registration for the FBR’s scheme has been simplified to eliminate the need for tax professionals’ assistance.