The Federal Board of Revenue (FBR) is contemplating the launch of a new registration scheme for shopkeepers and traders, following the unsuccessful implementation of the Tajir Dost Scheme. Sources suggest that the scheme could be introduced in the upcoming federal budget for 2025-26.
Muhammad Naeem Mir, the chief coordinator of the Tajir Dost Scheme, expressed that there is no need for a new registration initiative, especially after the introduction of Sections 236G and 236H in the Income Tax Ordinance 2001 in the last federal budget. According to him, these sections already address the tax collection requirements and should be sufficient for registering retailers and shopkeepers.
Under Section 236G, the advance tax on purchases from manufacturers or commercial importers by distributors, dealers, and wholesalers was reduced from 2% (for non-filers) to 0.1% (for filers). Similarly, Section 236H lowered the advance tax on sales to retailers from 2.5% (non-filers) to 0.5% (filers).
Mir emphasized that non-filers still face a higher tax rate, paying 2% under Section 236G and 2.5% under Section 236H, while registered filers pay significantly lower rates. He pointed out that the revenue potential from these two sections is much higher than the estimates from the Tajir Dost Scheme, which had projected around Rs 50 billion in revenue. As such, Mir believes there is no need for a new scheme in the coming budget.
Regarding the Tajir Dost Scheme, he stated that approximately 70,000 to 75,000 shopkeepers and retailers had registered under the initiative. The FBR, however, is now shifting its focus to a more targeted approach, prioritizing the registration of larger retailers over smaller shopkeepers.
In addition, the FBR has successfully integrated 9,834 major retailers into the Point of Sales (POS) system by March 2025, aiming to document transactions, particularly from Tier-I retailers such as hotels and restaurants. Among the registered retailers, 738 restaurants and 506 leather and textile retailers were included in the POS system by the end of March 2025.
