FBR to charge income tax from five categories of retailers

ISLAMABAD: Federal Board of Revenue (FBR) has devised new strategy to charge income tax from five categories of retailers through the Tajir Dost Scheme from April 1, 2024.

The five major categories included wholesalers, dealers, retailers, jewelers and cosmetics stores, grocery, medical and hardware stores as well as shops of meat, vegetables and fruits in selected six cities.

The FBR will kick-start registration in Tajir Dost Scheme in four cities — Karachi, Lahore, Peshawar and Islamabad and Rawalpindi — in the first phase and the tax collection will be made effective from July 1.

The notification regarding the mandatory registration of retailers has been issued. Under the scheme, the traders who pay their tax before 15 of every month will get 25pc concession.

The traders will be charged tax on the yearly rental value of the shop and every shopkeeper has to at least Rs1200 income tax on yearly basis.

On the Tajir Dost Scheme, an official said that the registration drive would be launched in six cities — Islamabad, Rawalpindi, Karachi, Quetta, Lahore and Peshawar. All non-filers and un-registered traders and shopkeepers would apply for registration under Section 181 of the Income Tax Ordinance 2001. They would register themselves through Tajir Dost scheme in Tax Asaan App through their mobile phones or through FBR’s web portal or by visiting FBR’s tax facilitation centres. Last date of registration is April 30, 2024.

Failure in registration would result in imposition of monetary penalties under section 182 of the Income Tax Ordinance 2001.