FBR to Activate Business Registry for Shopkeepers and Traders Next Week
The Federal Board of Revenue (FBR) has introduced the “National Business Registry,” a centralized database aimed at registering small traders and shopkeepers under the Tajir Dost Scheme, 2024. Scheduled to commence from April 1, 2024, this scheme mandates the payment of Advance Tax starting from July 2024. As outlined in the SRO.420(I)/2024 issued by the FBR, a special procedure has been established for the registration and tax payment of small traders and shopkeepers under the Tajir Dost Scheme, 2024.
Applicable to traders and shopkeepers operating from fixed places of business, including shops, stores, warehouses, or offices within specified territorial civil limits, the scheme encompasses wholesalers, dealers, retailers, manufacturers cum retailers, importers cum retailers, and others involved in the supply chain of goods. However, it excludes companies or units of national or international chain stores operating across multiple cities, as well as any individuals or classes of persons specifically excluded by the Board.
Under this scheme, all provisions of the Income Tax Ordinance apply to registered individuals for income computation, tax payable, tax collection and deduction, as well as advance tax liability. Registration under section 181 of the Ordinance is mandatory for all traders and shopkeepers, with a deadline of April 30, 2024, for application submission. In cases where registration is not initiated by the concerned individual, the Commissioner Inland Revenue will undertake the registration process.
Monthly advance tax payments are obligatory for all registered individuals, with the payable amount determined according to prescribed guidelines. Furthermore, a reduction of 25 percent in advance tax payable is applicable if the individual opts to pay the remaining balance in a lump sum or files an income tax return for Tax Year 2023 before the due date for the first monthly installment. Effective from July 1, 2024, advance tax payments are to be made monthly, with the first payment due on July 15, 2024, and subsequent payments due on the 15th of each month thereafter.
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