The Federal Board of Revenue (FBR) has rolled out a new tax initiative targeting small shopkeepers and retailers across 42 cities in Pakistan. This scheme, known as the Tajir Dost Special Procedure, 2024, sets fixed monthly tax payments ranging from Rs. 100 to over Rs. 20,000.
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Under this revised plan, the FBR has categorized shops based on their location and size, issuing market and area-specific guidelines for Indicative Income, Indicative Income Tax, and Monthly Advance Tax requirements.
The scheme applies to major cities including Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Quetta, and 36 others. It encompasses a wide range of small businesses, from tiny kiosks to larger retail operations.
Key points of the new tax structure:
- Shops measuring 50 square feet or less in commercial areas, makeshift shops, ‘khokas’, kiosks, or small shops up to 5×3 square feet will pay a fixed advance tax of Rs. 1,200 per annum.
- The scheme covers various types of shopkeepers including wholesalers, dealers, distributors, retailer-manufacturers, importer-retailers, and businesses combining retail and wholesale activities.
- Affected businesses must pay their tax in monthly installments.
This move by the FBR aims to streamline tax collection from the small business sector and bring more traders into the formal economy. The government expects this measure to increase revenue while providing a simplified tax structure for small-scale entrepreneurs.
The FBR has issued S.R.O. 1064 (I)/2024 to amend the existing Tajir Dost Special Procedure, signaling a significant shift in how small businesses will be taxed across Pakistan’s urban centers.
As this new system takes effect, it’s expected to impact thousands of small business owners across the country. The FBR urges all affected shopkeepers to familiarize themselves with the new requirements to ensure compliance.
