The Federal Board of Revenue (FBR) has developed the “National Business Registry” i.e. a central repository database of small traders and shopkeepers to be registered under the Tajir Dost Scheme, 2024.
The scheme shall come into force with effect from April 1, 2024, and payment of Advance Tax will be applicable with effect from July 2024.
According to the SRO.420(I)/2024 issued by the FBR, the special procedure for small traders and shopkeepers to be called Tajir Dost Scheme, 2024 has been issued.
This scheme shall apply to the traders and shopkeepers operating through a fixed place of business including a shop, store, warehouse, office or similar physical place located within the territorial civil limits including cantonments in the cities specified scheme for registration and payment of minimum advance tax.
The “shopkeepers” included wholesalers, dealers, retailers, manufacturer cum retailers, importer cum retailer, 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.
The scheme shall not apply to a person being a company or operating as a unit of national or international chain stores in more than one city or a person or a class of persons specifically excluded by the Board.
The FBR said that all provisions of the Income Tax Ordinance shall apply to the persons specified under this scheme in respect of the computation of income for a tax year and tax payable thereon, collection and deduction of tax as provided in the Ordinance, computation, and payment of advance tax liability under section 147 of the Ordinance and section 4C and 7E if liable to pay such tax.
Every trader and shopkeeper shall apply for registration under section 181 of the Ordinance or through the Tax Asaan app or on FBR’s portal or through FBR’s Tax Facilitation Centers by April 30, 2024.
If a person, who is required to be registered, does not apply for the registration under the said sub-paragraph, the Commissioner Inland Revenue shall register the trader or the shopkeeper as the case may be.
The provisions of section 182 of the Ordinance shall, mututis mutandis apply to the trader or shopkeeper who has not applied for registration.
Every person shall be liable to pay monthly advance tax. The advance tax paid shall be the minimum tax in respect of income from the business covered under this scheme.
The amount of monthly advance tax for a tax year shall be computed in the manner as may be prescribed.
Where the advance tax computed is zero, the advance tax payable shall be Rs. 1,200 per annum. Provided that where the income of the person is exempt from income tax under any provision of the Ordinance shall not apply.
The FBR said that the advance tax payable shall be reduced by 25 percent of the whole or the balance if the person pays in lump sum the whole or the balance as the case may be, of the remaining advance tax for the relevant Tax Year on or before any of the due dates for payment of such tax under the said paragraph; or if the person who has not filed income tax return, files income.
If the person who has not filed an income tax return files an income tax return for Tax Year 2023 before the due date for payment of the first monthly installment. The monthly advance tax payable under paragraph 5 shall be paid with effect from July 1, 2024 for the relevant tax year and the first payment will be due on 15th of July, 2024, and thereafter on the 15th of every month.
The tax payable for a tax year shall be paid through a separate Computerized Payment Receipt against the Payment Slip ID (PSID) generated by Tajir Dost module or through FBR’s portal or through FBR’s Tax Facilitation Centers, FBR added.
