Mohsin Siddiqui (Chief Reporter)
From July 2024, there will be no additional tax imposed on traders and shopkeepers who are registered under the Tajir Dost Scheme. This decision aims to provide relief and encourage more traders to comply with tax regulations. Naeem Mir, the Chief Coordinator of the Tajir Dost Scheme, announced this significant update. He stated that over 42,000 traders have already registered with the Federal Board of Revenue (FBR) under this scheme, highlighting its widespread acceptance and success.
The Ministry of Finance, in collaboration with the FBR, is set to finalize the modalities of tax payments for these traders in upcoming meetings scheduled for Tuesday. Despite the large number of registrations, no specific tax payment rules have been enforced for the newly registered traders under the Tajir Dost Scheme as of now. This gap in the system will be addressed in the forthcoming meetings to ensure a streamlined process.
Naeem Mir emphasized that traders and shopkeepers are already contributing their due share of taxes along with their income tax returns. He stressed that these traders should not be overburdened with additional taxes, but should instead contribute the appropriate amount of taxes to the national treasury. The objective is to strike a balance between ensuring fair tax contributions and not overwhelming traders with excessive financial demands.
To date, the FBR has not finalized any specific tax payment system for the trader community. This lack of a clear system has been a point of concern, but the upcoming discussions are expected to bring clarity and establish a well-defined process.
The introduction of section 191B in the Income Tax Ordinance under the Finance Act 2024 is a critical development. This section addresses prosecution for non-registration, ensuring that all traders comply with the registration requirement. According to this section, any person specified in section 99B, which deals with the special procedure for small traders and shopkeepers, who fails to register will be committing an offence. The penalties for non-compliance include imprisonment for up to six months, a fine, or both.
This legal provision underscores the importance of registration and compliance with tax regulations. It aims to create a level playing field for all traders and ensure that everyone contributes their fair share to the national economy. The enforcement of this section is expected to boost the registration numbers and enhance the overall effectiveness of the Tajir Dost Scheme.
The Tajir Dost Scheme is designed to simplify the tax process for traders and shopkeepers, making it easier for them to comply with tax regulations. By eliminating the additional tax burden, the scheme aims to foster a more inclusive and supportive environment for small traders. This initiative is part of a broader effort by the government to enhance tax compliance and broaden the tax base without imposing undue hardships on the trading community.
