WATCH: What is the TDX tax imposed on shopkeepers

KARACHI: The traders community rejected the Tajir Dost Scheme (TDS) introduced by the Federal Board of Revenue, ARY News reported.

Traders associations described the TDS as an anti-trade scheme that would lead to economic disaster for the traders.

They said that the Federal Board of Revenue (FBR) is sending them tax notices of Rs60,000 per month under the Tajir Dost Scheme, which is unbearable for traders.

Experts said that TDS has been imposed on shopping malls as well as small and large shops.

Traders associations demanded the withdrawal of the scheme which they termed ‘unacceptable’.

Chairman Karachi Wholesale Markets, Abdul Rauf, said that all traders are protesting against TDS as grocery bills are too hefty that it has become almost unbearable for a common shopkeeper to make both ends meet.

Speaking to ARY News, shopkeepers said that traders are already worried due to the downturn and recession in businesses as many tenant shopkeepers are forced to close their shops.

In a move to bring local traders under the ambit of taxation, the Federal Board of Revenue (FBR) launched ‘Tajir Dost Scheme’.

Businessman community in the country has voiced discontent, stating that the scheme’s introduction was “completely inappropriate” and deviates from established procedures.

Read More: Tajir Dost scheme: 76,259 traders registered so far

It should be noted here that the Tajir Dost Scheme, launched in March 2024, is a voluntary tax collection initiative aimed at integrating unregistered businesses into the existing tax system of Pakistan, as mandated by the International Monetary Fund (IMF).

The scheme is expected to generate Rs 400 to 500 billion in national exchequer annually.

The FBR has urged all unregistered wholesalers, retailers, dealers, and shopkeepers to register under the scheme.