Over 58,000 traders registered against 3.2m target

ISLAMABAD: The Federal Board of Revenue (FBR) has so far registered over 58,000 small traders/new shopkeepers under the Tajir Dost Scheme against the target of 3.2 million.

A senior FBR official told Business Recorder that the monthly tax payments from traders would start from this month (August).

Talking to Business Recorder here on Monday, Chief Coordinator of the Tajir Dost Scheme Naeem Mir said the Board has projected total collection Rs 50 billion under this head in the current year.

Mir said that it is an ambitious target and would require full cooperation of the traders to voluntarily deposit monthly tax payment instalments.

FBR extends scope of Tajir Dost Scheme to 42 cities

FBR has chalked out monthly advance income tax table for traders in 42 cities of the country including Abbottabad, Attock, Bahawalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, DG Khan, Faisalabad, Ghotki, Gujranwala, Gujrat, Gwadar, Hafizabad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushab, Lahore, Larkana, Lasbela, Lodhran, Mandi Bahauddin, Mansehra, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkur and Toba Tek Singh.

Based on location of shops, the FBR has issued market/ area wise indicative income, indicative income tax and Monthly Advance Tax to be paid by small traders.

Under the monthly tax payment plan, the traders and shopkeepers in 78 percent of the areas/ markets would be required to pay monthly advance income tax of Rs 5,000.

The monthly tax payment would be Rs 10,000 per month for traders covered in 14 percent markets of the country. The tax payment would be Rs 20,000 per month in 5 percent areas. Traders would pay Rs 30,000 per month as tax instalment in 2 percent areas and Rs 45,000 monthly payment in 0.6 percent areas and traders would pay monthly advance income tax of Rs 60,000 per month in 0.40 percent markets of the country.

Mir added that presently, the focus of the new scheme is to maximise registration of small traders and shopkeepers across the country. It is expected that a simple income tax return form for traders in Urdu language would be issued during the current week, he said.

The FBR has also started the process of issuing notices to traders for tax payments under the enforcement drive, but the issue of tax payment could only be resolved through an awareness campaign at a national level, he said.

A very low tax rate would be payable by any person owning a shop of fifty square feet or less in a commercial area, or owning a makeshift shop, or ‘khoka’, or kiosk, or small shop measuring not more than 5 ×3 square feet, liable for fixed advance tax of Rs 1,200 per annum.

The monthly instalment of tax to be paid by “shopkeeper” includes wholesaler, dealer, distributor, retailer, manufacturer-cum-retailer, 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.

Mir stated that 25 percent discount is available to the traders who opt to make the tax payment for the entire year. Traders, who think monthly tax payment rates are high, are going to the relevant Regional Tax Offices (RTOs) for correction of rates. However, traders are advised to receive signed/ stamped copies from the relevant RTO where objections on monthly tax instalment have been submitted.

As per Finance Bill 2024, the penalty of sealing a shop has been introduced for traders and shopkeepers who fail to register under schemed such as Tajir Dost Scheme. Further, failure to register by a shopkeeper or trader has been made an offence punishable on conviction with imprisonment for six months or a fine, or both.

Copyright Business Recorder, 2024