Federal Board of Revenue (FBR) in Pakistan is set to implement a fresh strategy aimed at levying income tax on five distinct categories of retailers under the innovative Tajir Dost Scheme starting April 1, 2024.

These targeted categories encompass wholesalers, dealers, retailers, jewelers, cosmetics stores, along with grocery, medical, and hardware outlets, alongside shops specializing in meat, vegetables, and fruits, initially focusing on six specific cities.

The rollout of registration under the Tajir Dost Scheme will commence in Karachi, Lahore, Peshawar, Islamabad, and Rawalpindi in the first phase, with tax collection slated to begin from July 1.

A notification mandating retailers’ registration has been issued, offering a 25% concession to traders who promptly settle their taxes by the 15th of each month.

Under this scheme, taxation will be based on the yearly rental value of the shop, with a minimum income tax requirement of Rs1200 annually per shopkeeper.

The Tajir Dost Scheme’s implementation will span across Islamabad, Rawalpindi, Karachi, Quetta, Lahore, and Peshawar, targeting non-filers and unregistered traders and shopkeepers who are required to register under Section 181 of the Income Tax Ordinance 2001.

Registration can be facilitated through the Tax Asaan App on mobile devices, FBR’s web portal, or by visiting designated tax facilitation centers. The deadline for registration is April 30, 2024.

Failure to register will lead to monetary penalties as stipulated under section 182 of the Income Tax Ordinance 2001.