ByThe Federal Board of Revenue (FBR) in Pakistan is working to bridge the gap with the business community regarding the Tajir Dost Scheme, a recently launched initiative aimed at registering small traders and retailers for tax compliance.
Key Concerns Raised by Traders:
- Unclear Tax Guidelines: A lack of clarity on how newly registered traders under the scheme will be taxed is creating hesitation among retailers to participate.
- Missing Incentives: Concerns exist regarding the absence of incentives or facilitation measures to encourage registration.
FBR’s Response and Next Steps:
- Collaborative Approach: The FBR held a meeting with trade union representatives on May 17, 2024, demonstrating a commitment to address concerns and work collaboratively.
- Open to Recommendations: FBR officials have requested a unified proposal from trade unions within a week, outlining their preferred approach to registration and taxation within the scheme.
- Emphasis on Transparency and Fairness: The FBR reiterated its dedication to transparency and fairness in taxation policies.
Looking Ahead:
- Improved Scheme Effectiveness: By addressing trader concerns, the FBR aims to improve the effectiveness of the Tajir Dost Scheme and increase tax compliance among small businesses.
- Dialogue and Collaboration: Ongoing dialogue between the FBR and trade unions is crucial for overcoming implementation challenges.
- Economic Growth Potential: A successful Tajir Dost Scheme can contribute to broader economic growth in Pakistan by fostering a more inclusive tax culture.
