The Federal Board of Revenue (FBR) has revised its implementation strategy for the Tajir Dost Scheme, halting market surveys and the registration of small shopkeepers and retailers. This change aims to make the ambitious target of collecting Rs. 50 billion from shopkeepers is more achievable during the 2024-25 fiscal year.
Under the new policy, the FBR will focus on registering large retailers and traders by analyzing their tax returns and commercial electricity consumption data, moving away from the previous approach of imposing a fixed tax per shop or retail outlet. This decision was made during a meeting between FBR officials and Muhammad Naeem Mir, the chief coordinator of the Tajir Dost Scheme-2024.
Naeem Mir explained to a group of media personnel that the FBR has agreed there is little benefit in pursuing very small traders who contribute minimally to national revenue. Instead, the FBR will target wholesale markets and retail markets in affluent areas, where there is greater potential for tax collection.
The FBR will no longer conduct door-to-door market surveys. Instead, it will determine the tax liabilities of large shopkeepers based on electricity meter data and stock verification from returns filed by major wholesalers and retailers. The FBR’s teams have begun a detailed analysis of nil-filers and shopkeepers who have filed returns, examining their stock positions alongside commercial electricity data.
Naeem Mir stated that the FBR has temporarily suspended its policy of registering small traders and imposing a fixed tax per shop. The focus will now be on registering large retailers and traders using commercial electricity meter data, suspending the fixed tax policy.
The chief coordinator of the Tajir Dost Scheme-2024 emphasized that the FBR has adopted a targeted approach to register retailers and shopkeepers, with the registration of very small shopkeepers no longer a priority. The scheme will continue, concentrating on shopkeepers who may be concealing income and evading taxes.
The FBR will prioritize cases with significant tax potential, targeting already registered retailers who file returns but conceal substantial income. Additionally, the FBR will use return analysis and third-party information to recover unpaid taxes from retail outlets.
