Pakistan Launches Scheme to Bring Shopkeepers into Formal Economy
Pakistan’s Federal Board of Revenue (FBR) has introduced a new initiative, the Tajir Dost Scheme, aimed at integrating small traders and shopkeepers into the country’s formal economy.
Mandatory Registration Ends Today
The program launched in April 2024 and requires shopkeepers in six major cities – Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar – to register with the FBR by today, April 30th, 2024. Registration can be done through the FBR’s mobile app, online portal, or designated centers.
Scheme Details
The scheme includes:
- Advance Tax Payments: Starting July 1st, 2024, registered businesses will make minimum monthly advance tax payments.
- Streamlined Process: Payments will be made electronically for better documentation and transparency.
- Broad Scope: The definition of “shopkeeper” encompasses various business activities, including wholesale, retail, manufacturing, and importing, conducted at fixed locations within the designated cities.
Incentives for Early Registration
The FBR offers incentives to encourage timely registration:
- 25% Discount: Businesses that pay their entire year’s advance tax upfront before the due date get a 25% reduction.
- Additional Discount: Non-filers who file their 2023 tax return before the first installment deadline receive an additional 25% discount on advance tax payments.
Benefits and Next Steps
The FBR views the Tajir Dost Scheme as a crucial step towards formalizing the informal sector and improving tax compliance among shopkeepers. Businesses that miss the registration deadline will be compulsorily registered by the FBR.
Shopkeepers in the targeted cities are urged to register by today to avoid penalties and benefit from the scheme’s incentives.
