The Federal Board of Revenue (FBR) has recently expanded its Tajir Dost scheme to encompass 42 cities across Pakistan, a significant increase from its initial rollout in just six cities. This expansion is aimed at boosting trader registration and fostering tax compliance across a wider geographical area, ranging from Abbottabad to Sukkur.
Under the newly instituted Tajir Dost Special Services Rules 2024, traders are mandated to pay a monthly advance tax calculated based on their shop’s market value. Depending on the location and assessed value of the shop, this tax can amount to as much as Rs. 20,000 per month.
The primary objective of this initiative is to enhance transparency within the tax system and facilitate easier adherence to tax obligations for traders. By expanding the scheme to more cities, the FBR aims to engage a greater number of traders, thereby promoting a culture of tax compliance nationwide.
The overarching goal of the Tajir Dost scheme is not only to streamline trader registration with tax authorities but also to ensure adherence to tax regulations. This, in turn, is anticipated to bolster tax revenues, which can be channeled towards public services and infrastructure development.
According to the FBR, the implementation of the Tajir Dost initiative is expected to optimize tax collection mechanisms while fostering a fair and conducive business environment. By encouraging all traders to fulfill their tax responsibilities, the government aims to alleviate the burden on compliant businesses and leverage these funds for the nation’s progress and economic prosperity.