Islamabad: In a major policy expansion, the Federal Finance Minister has approved the extension of the Tajir Dost scheme from 6 to 42 cities across Pakistan. This initiative is set to standardize tax collection by introducing a fixed tax system for shopkeepers, with monthly rates varying from Rs100 to Rs10,000.

According to Zameen.Com, the Federal Board of Revenue (FBR) under the new Tajir Dost Special Rules 2024, will implement a fixed tax system based on the commercial fair market value of retail spaces. This scheme is designed to simplify tax obligations for retailers by providing clear, standardized tax rates applicable to a range of retail operations, including wholesalers, dealers, and manufacturers involved in retail.

The expansion includes major cities like Abbottabad, Faisalabad, Karachi, Lahore, Multan, Peshawar, and Quetta. The FBR's recent notification outlines the criteria for determining taxable income, which will factor in rental value, location, and the market value of properties. Additionally, the updated regulations will offer a 25% reduction in advance tax liabilities for retailers who either pay their taxes in a lump sum at the start of the year or file their income tax returns diligently.

The enforcement of these rules will be rigorous, with specific penalties laid out for non-compliance. This move by the FBR aims to enhance tax compliance across the board and support the growth of the retail sector by establishing a more transparent and equitable taxation system. The official date for the implementation of these expanded rules will be announced soon.