The Federal Board of Revenue (FBR) in Pakistan is witnessing a significant boost in tax registrations, and the Tajir Dost Scheme appears to be a driving force behind this positive trend. This initiative, launched with the aim of broadening the country’s tax base, has garnered a remarkable response from retailers across major cities.
A Surge in Registrations:
About 18,371 retailers have successfully registered under the Tajir Dost Scheme. This impressive figure signifies a robust response from the targeted business community. The FBR’s breakdown of these registrations reveals two key channels:
- Direct Registrations: 14,472 retailers proactively took the initiative to register directly through the dedicated Tajir Dost Scheme.
- Indirect Registrations: An additional 3,899 retailers completed their registration through other FBR channels, potentially influenced by the overall awareness generated by the scheme.
Major Cities Leading the Charge:
The Tajir Dost Scheme has resonated particularly well in Pakistan’s major metropolitan centers. Karachi takes the lead with a 5,303 registrations, followed closely by Lahore with 5,112. Islamabad, the capital city, has also seen a noteworthy response with 1,567 registrations. Other significant contributions come from Rawalpindi (2,138), Peshawar (1,534), and Quetta (980). The remaining registrations (1,737) originate from various other cities across Pakistan.
Simplifying Registration and Expanding the Tax Net:
The Tajir Dost Scheme was specifically designed to streamline the tax registration process for shopkeepers and retailers. By making compliance easier and facilitating the acquisition of a National Tax Number Certificate, the FBR aims to bring a wider range of business activities into the formal tax net. Registration can be conveniently completed through the FBR’s Tax Asaan app, its online portal, or by visiting designated Tax Facilitation Centers. This simplified approach is crucial for capturing a broader spectrum of businesses and ultimately strengthening Pakistan’s tax base.
The “Tajir Dost (Special) Procedure”
A key feature of the scheme is the introduction of the “Tajir Dost (Special) Procedure, 2024.” This regulation, set to come into effect on July 1, 2024, outlines the minimum monthly advance tax payments required from small traders registered under the scheme. These payments will be processed through a user-friendly Computerized Payment Receipt system using a Payment Slip ID (PSID). This ensures a streamlined and documented payment process for both retailers and the FBR.
Legal Framework and Business Scope:
The legal foundation of the Tajir Dost Scheme is firmly established through the FBR’s SRO 457(I) 2024. This comprehensive document outlines the procedural requirements for compliance and specifies the categories of businesses that fall under the scheme’s purview. It builds upon the initial announcement made in Notification S.R.O. No. 420(l) 2024 on March 21, 2024.
A Broad Definition of “Shopkeeper” for Inclusivity:
The scheme adopts a broad definition of “shopkeeper,” encompassing a diverse range of business activities conducted at fixed locations. This includes wholesalers, retailers, manufacturers, and even importers operating within the designated city limits. By taking this inclusive approach, the FBR aims to encourage a wider array of businesses to formalize their operations. This not only strengthens the government’s revenue collection efforts but also fosters greater economic transparency.
A Testament to Expanding the Tax Base:
The momentum behind the Tajir Dost Scheme highlights the effectiveness of the FBR’s initiatives in integrating more businesses into the formal economy. The rising registration numbers serve as a testament to the government’s commitment to fostering a more comprehensive and compliant tax environment in Pakistan. As the scheme continues to gain traction, it has the potential to be a game-changer in Pakistan’s journey towards a broader and more robust tax base.
