Tajir Dost: New Tax Scheme for Shopkeepers in Pakistan (FBR & SRO 420 Explained)
This video explains:
What is the Tajir Dost scheme?
Who is eligible (and exempt) from registering?
How will taxes be calculated (it involves rent!)
Benefits of early registration (including a discount!)
Important deadlines (register by April 30th, 2024!)
BRIEF NOTE ON DRAFT SPECIAL PROCEDURE FOR SMALL TRADERS AND SHOPKEEPERS (TAJIR
DOST SCHEME)
Tuesday, March 26, 2024 Page 1 of 2
The FBR, vide SRO 420(I)/2024, dated 21st March 2024, has published draft special procedures for small traders and
shopkeepers for objections or suggestions within 7 days of the publication the said draft.
The scheme is titled as “Tajir Dost Scheme, 2024” (“Scheme”) and is as follows:
The scheme shall apply to trader uses and shopkeepers operating in fixed place of business such as shop, store, warehouse,
office or similar physical place located within the territorial civil limits including cantonments in Karachi, Lahore,
Islamabad, Rawalpindi, Quetta and Peshawar.
Further, the registration shall be effective from 1st April 2024 while payment of advance tax shall be effective from 1st July
2024. This scheme is not applicable to a company, national or international chain stores operating in more than one city
or to any persons specifically specified by the FBR.
Tajir Dost module
of the Tax Asaan App or FBR’s portal for the purpose of registration and payment of advance tax.
6. Person:
a. Traders and shopkeepers falling under the scope of this scheme.
7. Shopkeeper:
a. Wholesaler, dealer, retailer, manufacturer cum retailer, importer cum retailer or such person who
combines the activity of retail and wholesale with any other business activity or other person in the supply
chain of goods.
PROVISIONS OF THE INCOME TAX ORDINANCE, 2001 (“ITO”) APPLICABLE TO THIS SCHEME:
1. #umairgulzartax
REGISTRATION – W.E.F. 1ST APRIL 2024:
Every trader and shopkeeper shall register through either of the modes before 30th April 2024 with the National Business
Registry (Tajir Dost):
1. Under section 181 of the ITO; or
2. Through the Tax Asaan app; or
3. On FBR’s portal; or
4. Through FBR’s Tax Facilitation Centers.
If a person who is required to be registered and does not get registered, the provisions of section 182 of the ITO shall be
applicable and the Commissioner Inland Revenue (“CIR”) is empowered to register the trader or shopkeeper on his own.
PAYMENT OF ADVANCE TAX- W.E.F. 1ST JULY 2024:
Every person shall be liable to pay a monthly advance tax and this amount shall be the minimum tax in respect of income
from business covered under this scheme. The amount of monthly advance tax shall be computed according to the manner
as may be prescribed. However, if the advance tax liability is zero, then a minimum of Rs 1,200 per annum shall be payable
as advance tax. However, payment of advance tax will not apply on the income of the person who is exempt from income
tax
Furthermore, the advance tax payable shall be reduced by 25% of the whole or the balance if:
1. The person pays in lump sum the whole or the balance on or before the due dates for payment; or
2. The person who has not filed income tax return, files income tax return for the Tax Year 2023 before the due date
for payment of the first monthly installment.
The Advance tax shall be payable monthly from 1st July 2024 and the first payment will be due on 15th July 2024 and
thereafter on the 15th of every month.
Shopkeepers in Pakistan: New Tajir Dost Scheme Explained
This guide breaks down the recently announced Tajir Dost Scheme for small businesses in Pakistan:
tajir dost tax
What is the Tajir Dost Scheme?
The Tajir Dost Scheme is a new initiative by the Federal Board of Revenue (FBR) to simplify tax filing for small traders and shopkeepers.
Who Qualifies (and Who Doesn't)?
Eligible: Businesses with a physical location (shop, warehouse, office, etc.) in major cities like Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar.
Not Eligible: Companies, national/international chain stores with locations in multiple cities, or any businesses specifically excluded by the FBR.
How are Taxes Calculated? (Your Rent Matters!)
Taxes are based on an "indicative income" calculated using a formula that considers your business location's annual rent value.
Benefits of Early Registration (Discounts Available!)
Registering before April 30th, 2024, qualifies you for a 25% discount on your minimum use annual advance tax of Rs. 1200 (if applicable). Additionally, those who haven't filed income tax returns for 2023 can get the discount by filing before the first advance tax installmen not deadline.
Important Deadlines:
Registration: April 30, 2024
Minimum Advance Tax Payment (if applicable): July 15, 2024 (and then every 15th of the month)
How to Register?
Credit to Tola Associate
#TajirDost #TaxPakistan #ShopkeeperTax #FBR #SRO420 #umairgulzartax
