Islamabad, Mar 24, 2025: The upcoming Finance Bill (2025-26) is set to introduce a fresh registration scheme for shopkeepers and traders, replacing the unsuccessful Tajir Dost Scheme.
The Federal Board of Revenue (FBR) has drafted this new plan and expects to unveil it in the forthcoming budget.
However, the authorities have not yet shared the specifics of the scheme with traders’ associations or industry representatives.
Previously, the Tajir Dost Scheme managed to register around 70,000 to 75,000 shopkeepers and retailers, contributing millions in tax revenue.
Despite this, traders have voiced strong opposition to the proposed new initiative, questioning its necessity in light of the existing taxation framework.
They argue that the introduction of sections 236G and 236H in the Income Tax Ordinance 2001, implemented in the last budget, already addresses tax collection from the trading sector effectively.
Under Section 236G, the government reduced the advance tax on purchases that distributors, dealers, and wholesalers make from manufacturers or commercial importers from 2 percent for non-filers to 0.1 percent for filers.
Similarly, Section 236H lowered the advance tax on sales made to retailers by manufacturers, commercial importers, and distributors from 2.5 percent for non-filers to 0.5 percent for filers.
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As a result, non-filers still bear a higher tax burden, paying 2 percent under Section 236G and 2.5 percent under Section 236H.
Traders’ representatives believe that rather than launching a new scheme, the FBR should focus on enforcing tax return compliance among unregistered retailers.
They argue that leveraging data from Sections 236G and 236H can yield a far greater revenue impact compared to the Tajir Dost Scheme.
The FBR’s decision to introduce a new registration system raises concerns about whether it will address existing gaps or merely add another layer of bureaucracy.
Traders insist that improving enforcement and utilizing existing tax data would be a more effective approach.
As the budget announcement approaches, stakeholders will be closely watching how this policy unfolds and whether it garners support from the business community.
