Six major cities, namely Islamabad, Rawalpindi, Karachi, Lahore, Quetta, and Peshawar, were the sites of the scheme’s launch.
Monthly advance tax payments under the Tajir Dost Scheme will begin on July 1, 2024, with the first payment due on July 15, 2024.
The private news station stated that further payments will be due on the fifteenth of the following month, allowing for quick payments through a specialized computerized system with a Payment Slip ID (PSID) produced by the Tajir Dost module or the FBR’s internet portal.
The system will impose monthly advance tax payments on traders and retailers, which will act as a minimum tax on income from covered enterprises.
In an effort to facilitate compliance and support the nation’s economic growth, the FBR will outline the monthly advance tax computation methodology.
The Tajir Dost Scheme was introduced under SRO 420(I)/2024 and utilizes Section 99B of the Income Tax Ordinance, 2001, to assist traders and shopkeepers who operate within designated territorial limits through fixed premises such as shops, stores, warehouses, and offices. However, as decided by the FBR, the plan does not include businesses or branches of national or international chain stores that operate throughout many cities.
All qualified merchants and retailers must register by April 30, 2024, in accordance with Section 181 of the Income Tax Ordinance, 2001, in order for it to go into effect on July 1, 2024. You can register in person at one of FBR’s Tax Facilitation Centers or online using specific platforms like the Tax Asaan app or the FBR portal.
According to Section 182 of the Ordinance, non-compliant people may be registered by the Commissioner of Inland Revenue, and non-compliant dealers or shopkeepers may face penalties. A minimum yearly advance tax of Rs 1,200 is imposed on individuals with zero computed advance tax; this amount does not include income that is exempt from payment under any Ordinance provision.
Additionally, the plan offers a 25 percent reduction in advance tax payable if income tax returns for the tax year 2023 are filed before the first monthly installment is due or if the full amount of advance tax for the applicable tax year is paid in a lump sum before the due date.
The FBR’s dedication to creating an environment that is favorable for small enterprises, encouraging compliance, and accelerating economic growth across the country is reflected in this program.
