ISLAMABAD: With the approval of the federal finance minister, the FBR has launched Tajir Dost Special Rules 2024 for expanding it from 6 to 42 cities across the country under which the tax machinery unveiled fixed tax for retailers ranging from Rs100 to Rs10,000 a month depending on the fair market valuation of shops.
There is a provision of commercial fair value determined by the FBR in case of each city. The FBR’s official notification states that in this special procedure, unless there is anything repugnant in the subject or context, —(a) “indicative income” means income as specified in column (4) of the table in the Schedule-II and determined by the Board on the basis of factors including but not limited to rental value of the property, its location and fair market value; “physical place” includes any place connected to business or an office or a home operating as a business place; and “shopkeeper” includes wholesaler, dealer, distributor, retailer, manufacturer-cum-retailer, importer-cum-retailer, or such person who combines the activity of retail and wholesale with any other business activity or other person in the supply chain of goods.
According to Statutory Regulatory Order (SRO) issued by the FBR on late Monday night stating that the retailers scheme got implemented in Abbottabad, Attock, Bahwalnagar, Bahawalpur, Chakwal, Dera Ismail Khan, Faisalabad, Ghotki, Gujrat, Gwadar, Hafiz Abad, Haripur, Hyderabad, Islamabad, Jhang, Jhelum, Karachi, Kasur, Khushub, Lahore, Larkana, Lasbela, Lodhran, Mandi Bhauddin, Manshera, Mardan, Mirpurkhas, Multan, Nankana, Narowal, Peshawar, Quetta, Rahim Yar Khan, Rawalpindi, Sahiwal, Sargodha, Sheikhupura, Sialkot, Sukkar and Toba Tek Singh.
The SRO states that in exercise of powers conferred by section 99B of the Income Tax Ordinance, 2001 (XLIX of 2001), read with paragraph 7 of the Tajir Dost (Special) Procedure, 2024, the Board with the approval of the Minister-in-charge, is pleased to amend the Notification vide S.R.O. No. 457 (I)/2024, dated the 30th March, 2024 to add in and modify the Tajir Dost Special Procedure, 2024.
In sub-paragraph (1), for the word “Schedule”, the expression “Schedule-I” shall be substituted; and (b) in sub-paragraph (2), in clause (c), for the full stop at the end, the expression “, or” shall be substituted and thereafter the following new clauses shall be added, namely: —“(d) who has already filed return of income for the tax year 2023 prior to the 30th day of March, 2024 and the advance tax liability paid by him under section 147 is more than the advance tax computed under this Special Procedure, for the tax year 2025 and onwards; (e) owning a shop of hundred square feet or less in a residential area; or (f) in case the income of the person is exempted from tax under any provisions of the Ordinance; ”
The advance tax under sub-paragraph (1), payable on indicative income, shall be computed at the rates provided in Division I of Part I of the First Schedule to the Ordinance for the relevant tax year and as specified in Schedule II: Provided that the advance tax, payable under sub-paragraph (1) shall be reduced by twenty five percent of the whole or the balance, if —(a) the person pays in advance, the installments due in succeeding months, in lump sum; or (b) the person who has not filed income tax return, files income tax return for the tax year 2023 and pays tax on his income for the year equal to or more than the tax on indicative income computed in Schedule – II of this procedure.” (c) for sub-paragraph (3), the following shall be substituted, namely: — “(3) Notwithstanding anything contained in sub-paragraph (1), any person owning a shop of fifty square feet or less in a commercial area, or owning a makeshift shop, or ’khoka’, or kiosk, or small shop measuring not more than 5×3 square feet, shall be liable for fixed advance tax of twelve hundred rupees per annum: Provided that this sub-paragraph shall not apply to commercial areas as specified by the Board in the Schedule – III and the persons in such areas shall pay advance tax under sub-paragraph (1) as specified in Schedule – II.”
The provisions for imposition of penalty under section 182 for sealing of the shop of a person shall apply, if the person fails to pay monthly advance tax under this paragraph for two months in a tax year.”;
Jurisdiction of Income Tax Authority. — (1) The income tax authority, having jurisdiction over the persons defined in clause (c) of sub-paragraph (1) of paragraph 8, under sections 209 or 210 of the Ordinance for carrying out the purposes of the provisions of the Ordinance, shall also have jurisdiction over the said persons, for carrying out the purposes of this Special Procedure including but not limited to exercising the powers and performing the functions for imposition and collection of default surcharge under section 205, sealing of a shop under section 182 or prosecution proceedings under section 191B of the Ordinance.
(2) Without prejudice to exercising the powers and performing the functions under sub-paragraph (1), the said income tax authority may recover the advance tax due for a month under section 140 of the Ordinance without issuing any notice under any provisions of the Ordinance, after lapse of seven days from the due date of advance tax for the month.”
