FBR planning another registration scheme for shopkeepers

The Federal Board of Revenue (FBR) is seriously considering launching another registration scheme for shopkeepers/ traders after the failure of Tajir Dost Scheme.

The government may introduce a new scheme in the federal budget for 2025-26, but traders believe it is unnecessary. Muhammad Naeem Mir, chief coordinator of the Tajir Dost Scheme, stated that after implementing Sections 236G and 236H in the Income Tax Ordinance 2001, there is no need for an additional scheme.

The advance tax under Section 236G on purchases by distributors, dealers, and wholesalers from manufacturers and importers has been reduced from 2 percent to 0.1 percent for filers. Similarly, tax under Section 236H on sales to retailers has been lowered from 2.5 percent to 0.5 percent for filers. Non-filers still face higher rates of 2 percent and 2.5 percent, respectively.

Mir emphasized that enforcing return filing from unregistered retailers using data from these sections could generate more revenue than the Rs50 billion expected from the Tajir Dost Scheme. So far, 70000 to 75000 shopkeepers and retailers have registered under the scheme. However, the FBR is now focusing on larger retailers rather than very small shopkeepers.

Meanwhile, the Federal Board of Revenue has integrated 9834 major retailers into the Point of Sales system by March 2025 to document transactions. This includes 738 restaurants and 506 leather and textile retailers.