Less than 1 per cent of registered retailers pay tax under Tajir Dost Scheme

WEB DESK: A recent report has highlighted that less than one per cent of registered retailers have paid taxes under the Tajir Dost Scheme.

According to the Federal Board of Revenue (FBR), only 277 shopkeepers and retailers have so far contributed a total of Rs503,632 in taxes under this scheme. The latest FBR data shows that the total number of registered retailers under the Tajir Dost Scheme stands at 63,964.

In a related development, the FBR has issued SRO 132(I) 2024, proposing amendments to the Income Tax Rules, 2002, to introduce an electronic tax return form for the tax year 2024. This new form aims to streamline the tax filing process for traders.

According to Business Recorder, under the proposed rules, retailers who file their returns will benefit from a reduction in advance tax rates. Specifically, the advance tax on purchases (Section 236G) will be reduced from 2 per cent (the non-filer rate) to 0.1 per cent (the filer rate) for purchases made by distributors, dealers, and wholesalers from manufacturers and commercial importers.

Similarly, the advance tax on sales to retailers by manufacturers, commercial importers, and distributors (Section 236H) will decrease from 2.5 per cent (non-filer rate) to 0.5 per cent (filer rate).

The FBR has invited stakeholders to provide feedback on the draft return form for retailers within seven days of its publication in the official Gazette. Any objections or suggestions received within this period will be considered by the FBR.

The electronic return form for the tax year 2024 and subsequent years will require traders, especially those who were non-filers in 2023, to provide detailed information, including business turnover or receipts, total trading purchases, other expenses, net profit or taxable income, income from other sources, interest income, rental income, tax paid during the year, and total adjustable tax.

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