FBR to focus on five categories of retailers for registration

ISLAMABAD: Five categories of retailers are going to be brought into tax net through Tajir Dost Scheme with effect from April 1, 2024.

Federal Minister for Finance Muhammad Aurangzeb has granted his assent and the Federal Board of Revenue (FBR) would issue formal notification anytime soon.

The five major categories included wholesalers, dealers, retailers, furniture and decoration show rooms, jewelers and cosmetics stores, grocery, medical and hardware stores as well as shops of meat, vegetables and fruits in selected six cities.

The FBR will kick-start registration in Tajir Dost Scheme in four cities -- Karachi, Lahore, Peshawar and Islamabad and Rawalpindi -- in the first phase and the tax collection will be made effective from July 1.

On other hand, the FBR has so far made revenue collection close to Rs850 billion till Friday, and ensured that the selected tax offices and bank branches remain open on Saturday and Sunday for the purpose of tax collection to achieve its monthly target of Rs879 billion in March.

On Tajir Dost Scheme, an official said that the registration drive would be launched in six cities -- Islamabad, Rawalpindi, Karachi, Quetta, Lahore and Peshawar. All non-filers and un-registered traders and shopkeepers would apply for registration under Section 181 of the Income Tax Ordinance 2001. They would register themselves through Tajir Dost scheme in Tax Asaan App through their mobile phones or through FBR’s web portal or by visiting FBR’s tax facilitation centres. Last date of registration is April 30, 2024.

Failure in registration would result in imposition of monetary penalties under section 182 of the Income Tax Ordinance 2001.

The categories of persons required to be registered: traders, shopkeepers, wholesalers, retailers, dealers, manufacturer-cum-retailers, importer-cum-retailers, 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.

There would be 25 percent discount in monthly advance tax payment if a taxpayer opts to pay total advance tax liability in lump sum. There would be 25 percent discount in monthly advance tax payment if a taxpayer is a non-filer of tax return and files tax return for tax year 2023 before the due date of first installment of monthly advance tax (July 15, 2024).

They would be able to avail 50 percent discount in advance tax if they are non-filer and file return for tax year 2023 before July 15 and also make 12 months (monthly advance tax payments for tax year 2024) in one go on July 15. No help of a tax lawyer, tax accountant or tax practitioner is required for registration under Tajir Dost Scheme. The mobile App is available in Urdu version also.

There is a list of businesses which are require to be registered under this scheme, including fruits or vegetables outlets, meat outlets, furniture outlets including home furnishers, franchise stores, jewellers, motor vehicle showrooms, fertilizer dealers, pesticide and chemical dealers etc.