This article addresses the new Tajir Dost scheme launched by the FBR (Federal Board of Revenue) in Pakistan, focusing on questions raised about its applicability, registration, and tax implications.
Who is Eligible?
The Tajir Dost scheme applies to various businesses, including:
- Retailers: General stores, medical stores, furniture shops, and many others.
- Wholesalers: Businesses that sell goods in bulk to retailers.
- Distributors: Businesses that act as intermediaries between manufacturers and retailers.
Exceptions:
- Companies with multiple members (except Tier-One retailers)
- National and international chain stores with branches across multiple cities
Registration:
- Pre-registered Businesses: If you are already registered for income tax and file returns, you don’t need to re-register for Tajir Dost. Your existing registration automatically includes you.
- New Registrations: The specific registration process for new businesses is still under development. We’ll update this information once it becomes available.
Tax Payments:
- Advance Tax: Under Tajir Dost, you’ll pay income tax in monthly installments (12 per year) instead of quarterly installments as in the previous system.
- Adjustment with Final Tax Return: The advance tax you pay throughout the year will be adjusted against your final income tax return filed at the end of the year.
Tajir Dost vs. Existing Income Tax:
- The Tajir Dost scheme is an addition to the existing income tax system. You will still need to file your annual income tax return.
- Advance tax payments under Tajir Dost will be adjusted against your final tax liability.
Point-of-Sale Registration (Tier-One Retailers):
- The scheme mentions a “Tier-One Retailer” category. It’s unclear yet what specific criteria define a Tier-One retailer.
- If you belong to the Tier-One retailer category, you might need to register your point-of-sale (POS) system.
Sales Tax:
- The Tajir Dost scheme is not related to sales tax. You might still need to register for sales tax separately if applicable to your business.
Electricity Bill and Advance Tax Adjustment:
There is no information yet on whether advance tax payments under Tajir Dost can be adjusted against any advance tax component included in your electricity bill.
Implementation Timeline:
- Data collection for the scheme is ongoing.
- Registration procedures are still under development.
- The scheme is expected to be implemented from July 2024.
Important Note:
The information provided here is based on currently available details. The FBR might release further clarifications or updates on the scheme in the future. It’s recommended to stay updated.
