The Tajir Dost scheme has recently undergone a significant expansion across Pakistan, now encompassing 42 cities, up from its initial coverage of 6 cities. This expansion was approved by the federal finance minister and implemented by the Federal Board of Revenue (FBR).
Under the Tajir Dost Special Rules 2024, retailers are subject to a fixed monthly tax ranging from Rs100 to Rs10,000, depending on the fair market valuation of their shops. This valuation considers factors such as rental value, location, and fair market value specific to each city.
The scheme applies broadly to various types of businesses, including wholesalers, dealers, distributors, manufacturers operating as retailers, and others involved in the supply chain of goods.
Amendments have been made to previous notifications to incorporate these changes and additions, ensuring alignment with section 99B of the Income Tax Ordinance, 2001. Special provisions exist for retailers meeting specific criteria, such as those who have previously filed tax returns, operate small shops in residential areas, or benefit from income tax exemptions under relevant provisions.
Non-compliance may result in penalties, including shop sealing and imposition of default surcharges, enforced by income tax authorities under the provisions of the Income Tax Ordinance.
Overall, the expansion of the Tajir Dost scheme aims to simplify tax compliance for retailers across Pakistan while enhancing revenue collection through a structured and fair taxation framework tailored to local economic conditions and business sizes.
