Islamabad, JULY23: The Federal Finance Minister has given his approval for the Tajir Dost program to be significantly expanded, going from six to forty-two cities in Pakistan.
According to specifics, the Federal Board of Revenue (FBR) has implemented a fixed tax system for shops, with rates ranging from Rs100 to Rs10,000 per month, under the new Tajir Dost Special Rules 2024. The shop space’s fair market value determines how much tax is owed.
A recent FBR notification outlines the new regulations, which assign a commercial fair value to every city. The extension of the program seeks to simplify tax procedures and give retailers nationwide clarity.
According to the notification, the computation of “indicative income” will be contingent upon various factors, including the property’s market value, location, and rental value. The word “shopkeeper” refers to a variety of positions, such as wholesalers, dealers, retailers, and manufacturers that work in retail settings.
These days, more cities including Abbottabad, Faisalabad, Karachi, Lahore, Multan, Peshawar, Quetta, and many more are included in the amended Statutory Regulatory Order (SRO). The government is working to improve tax compliance and assist the retail industry, and this expansion is part of that effort.
Among the SRO’s major modifications are:
1. Advance Tax Rates: Depending on the location and size of the shop, fixed advance tax rates are offered. A set yearly tax of Rs1,200 would be imposed on retailers in commercial districts with stores that are 50 square feet or smaller.
2. Tax Adjustments: Retailers may receive a 25% reduction in their advance tax burden if they file their income tax returns or pay their advance tax in lump sum.
3. Enforcement and fines: Failure to pay monthly advance tax may result in fines from the income tax authority, which will enforce compliance.
With this step, the FBR hopes to streamline the tax procedure and provide an equitable system for merchants in all of the newly listed cities. We’ll let you know when the expanded program officially launches.
