FBR has continued its efforts to expand the reach of the Tajir Dost Scheme, a program aimed at bringing small retailers into the formal tax net. As of October 2024, a total of 9,290 Tier-1 retailers have registered with the scheme.
FBR has been actively adding large retailers to its Point of Sales (POS) system. In October alone, 160 more retailers were registered, bringing the total number of registered Tier-1 retailers to 9,290. This represents a significant increase from the 9,130 retailers registered by September 2024.
Among the newly registered retailers, 676 are restaurants, and 507 operate in the leather and textile sectors. These industries are known for their large number of small businesses, and their registration under the Tajir Dost Scheme is a positive development.
Despite the growing number of registered retailers, tax collections under the Tajir Dost Scheme remain relatively low. As of October 2024, only Rs. 1.3 million has been collected from 575 shops out of the approximately 64,000 FBR-registered outlets.
The low tax collection rate raises concerns about the effectiveness of the Tajir Dost Scheme in achieving its objectives. While the FBR has made significant progress in registering retailers, it is crucial to address the challenges that are hindering tax compliance.
FBR may need to implement additional measures to encourage tax compliance among small retailers. These measures could include providing technical assistance, simplifying the tax filing process, and increasing awareness about the benefits of formal registration.
