In a significant move to register 3.2 million shopkeepers and traders, the Federal Board of Revenue (FBR) has announced the expansion of the “Tajir Dost Scheme” to 42 cities, including major hubs like Faisalabad and Sialkot. As of now, nearly 46,000 traders and shopkeepers have been successfully registered under this initiative. This development comes after the business community, during a recent video conference with the FBR Chairman and Regional Tax Offices, agreed to widen the scheme’s scope before the implementation of any new taxes on traders.
Previously, Faisalabad, a major trading center, was excluded from the scheme, but it has now been included along with other cities such as Multan, Mardan, Sukkur, Sahiwal, Sargodha, DG Khan, and Gujrat. The expansion ensures that almost all significant urban and semi-urban areas are covered under the “Tajir Dost Scheme,” aiming for comprehensive trader registration.
During the video conference, FBR officials discussed the next steps, including issuing a draft notification on the proposed tables of indicative income based on the valuation of commercial properties. These tables are expected to be officially notified by July 15, allowing traders in each city to submit their comments on the draft Statutory Regulatory Orders (SROs) issued by the FBR.
However, the meeting was not without contention. Many traders expressed strong opposition to the FBR’s proposal of taxing based on property values, threatening to go on strike. The meeting reached a deadlock as traders and FBR officials could not agree on an alternative taxation formula. One suggestion, to tax based on business categories, was outrightly rejected by the FBR.
The atmosphere during the online meeting grew tense, with harsh words exchanged between traders and tax officials. Representatives of the traders voiced their frustrations over the proposed tax schemes, and some even issued threats of strikes.
Amidst this turmoil, Muhammad Naeem Mir, Chief Coordinator of the Tajir Dost Scheme 2024, stepped in with two potential solutions. His first proposal was to introduce a simple tax return form specifically for traders. This form, which has already been drafted, would include a fixed registration fee of Rs 1200. Mir suggested that Tier-II category retailers should self-assess their turnover, file the simplified return form, and pay a turnover tax accordingly. However, the FBR rejected this proposal, emphasizing their commitment to issuing the notification by the July 15 deadline.
Mir’s second option was for the FBR to delay issuing any SROs immediately and instead, determine the indicative values of commercial properties in consultation with traders and field offices. This collaborative approach, he argued, would ensure that the notifications reflect a more accurate and agreeable valuation method. Mir stressed the importance of issuing notifications in close consultation with traders’ representatives to avoid future conflicts and ensure smoother implementation.
The FBR’s expansion of the “Tajir Dost Scheme” reflects a broader strategy to bring more traders into the tax net, aiming to increase transparency and tax compliance within the trading community. However, the resistance from traders highlights the challenges of implementing new tax policies, especially when existing methods are met with skepticism and opposition.
As the FBR moves forward with its plans, the involvement and cooperation of the trading community will be crucial. The success of the expanded registration scheme and the acceptance of new tax regulations will largely depend on the ability of the FBR to address traders’ concerns and work towards mutually beneficial solutions.
