Tajir scheme likely to see major changes

Significant modifications are anticipated in the Federal Board of Revenue (FBR)’s scheme aimed at traders, known as the Tajir Dost Scheme. 

Sources indicate that FBR intends to target larger retailers instead of imposing taxes on smaller traders.

The FBR plans to register larger traders by analyzing data from tax returns, data security measures, and commercial electricity usage.

The existing fixed tax framework for each retail outlet is expected to be suspended, according to sources.

It is worth noting that the trader-friendly scheme has not achieved its revenue objectives.

The collection target was established at 10 billion rupees for the first quarter and 23.4 billion rupees for the second quarter under the TDS scheme.

FBR has committed to the IMF to generate 50 billion rupees through TDS in the current fiscal year.

Previously, the Federal Board of Revenue (FBR) concluded the deadline for submitting income tax returns for the tax year 2024 without offering any further extensions.

As reported late last night, over 5.25 million taxpayers had filed their returns, marking an 85% increase in submissions from the previous year.

FBR data reveals that the total number of filers reached 5.25 million by October 31, an increase of about 2.3 million compared to last year.

Sources indicate that around 1.93 million people reported zero taxable income, comprising 38.57% of all filers.

Since July 2023, 1.86 million new individuals have registered as filers, including 602,351 who registered after July 2024.

The FBR had designated October 31 as the final deadline after granting two earlier extensions this year.

With the deadline now passed, Express-News reports that the government will start auditing the income and expenses of those who have not filed.

Additionally, the FBR intends to eliminate the “non-filer” classification, categorizing non-filers as tax defaulters, exposing them to penalties and possible legal actions under tax regulations.

The FBR has also established five key restrictions for non-filers, as reported by Express News, which include prohibitions on purchasing properties and vehicles, international travel, opening current accounts, and investing in mutual funds.