Under the Tajir Dost Scheme, the Federal Board of Revenue (FBR) is starting the registration process for traders to incorporate five main kinds of traders into the tax system.
A news source claims that Muhammad Aurangzeb, the finance minister, has accepted the idea, subject to the announcement.
The program is aimed at wholesalers, dealers, retailers, car dealerships, retailers, jewellery stores, grocery, hardware, medical, and furniture stores, meat shops, vegetable and fruit outlets, car showrooms, and dealers of chemicals, fertilizer, and chemicals in Karachi, Lahore, Peshawar, Quetta, Islamabad, and Rawalpindi.
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The program covers manufacturer-retailers, importer-retailers, and people who engage in other supply chain-related business ventures in addition to combining retail and wholesale operations.
Following a reported income of about Rs850 billion on Friday, a subset of tax offices and bank branches will be open on weekends to ensure tax compliance and fulfill the monthly target of Rs879 billion for tax collection for March.
Shopkeepers and traders can register under Section 181 of the Income Tax Ordinance 2001 by going to FBR’s tax facilitation centres, via the Tax Asaan App, or on the FBR website.
Tax collection starts on July 1st, and registration opens on April 1st. Section 182 of the Income Tax Ordinance 2001 stipulates that there will be financial penalties for failure to register by the deadline of April 30.
Along with access to a 25% reduction on monthly advance tax payments for non-filers who file their tax returns for the tax year 2023 before the July 15 deadline for the first installment of monthly advance tax, the plan also gives a 25% discount on monthly advance tax payments if paid in lump sum.
The reduction rises to 50% for individuals who pay the full 12 months’ advance taxes for the tax year 2024 on July 15 in a single payment.
The program’s registration process has been streamlined, so tax experts are no longer required.