Weeks before budget, FBR reaches out to trade unions over Tajir app

ISLAMABAD: After failing to bring retailers into the Tajir Dost Scheme, the government has extended the deadline by one week for submitting a unified proposal regarding the registration and taxation of traders under the scheme.

Despite incentives, only 75 retailers registered for the Tajir Dost Scheme by the April 30, 2024, deadline. Retailers rejected the government’s offers, knowing it could not effectively enforce tax laws against evaders. Now, the Federal Board of Revenue (FBR) has re-engaged retailers ahead of the upcoming budget, appearing to save face and satisfy the IMF. Over the past three decades, all retailer schemes have failed to achieve the desired results. The ongoing scheme will likely face the same fate without a carrot-and-stick approach, as the FBR lacks the political will to enforce tax laws against evaders.

According to an official announcement by the FBR on Friday, the FBR convened a pivotal meeting with representatives from various trade unions in Pakistan, including Chief Coordinator of the Tajir Dost Scheme Naeem Mir and other senior officials at the FBR headquarters.

The FBR officials and the chief coordinator of the Tajir Dost Scheme agreed to consider the trade community’s reservations and recommendations. They requested a unified proposal within one week regarding the registration and taxation of traders under the scheme.

The FBR also urged trade unions to cooperate with the government in facilitating the registration of traders under the Tajir Dost Scheme.