Major changes expected in FBR's Tajir scheme

Major changes are expected in the Federal Board of Revenue (FBR)’s trader-friendly scheme or known as (Tajir Dost Scheme).

According to sources, instead of collecting taxes from small traders, FBR is planning to take action against large retailers.

FBR will register large traders based on analysis of returns, data security, and commercial electricity consumption data.

The current fixed tax policy for each retail outlet will be suspended, sources say.

Notably, the trader-friendly scheme has 'failed' to meet its revenue targets.

The goal for the first quarter was set at 10 billion rupees, and for the second quarter, the TDS collection target was 23.4 billion rupees.

FBR has agreed with the IMF to collect 50 billion rupees via TDS in the current fiscal year.

Earlier, The Federal Board of Revenue (FBR) closed the deadline for filing income tax returns for the tax year 2024 without granting any further extensions.

As of late last night, over 5.25 million people had submitted their tax returns, reflecting an 85% increase in filings compared to the previous year.

According to FBR data, the total number of filers reached 5.25 million by October 31, an increase of approximately 2.3 million over last year.

Sources said that around 1.93 million individuals declared zero taxable income, making up 38.57% of all filers.

Since July 2023, 1.86 million new individuals have become filers, with 602,351 registering after July 2024.

The FBR had set October 31 as the final deadline following two extensions earlier this year. Now that the deadline has passed, Express-News reports that the government will audit the income and expenditures of non-filers.

Furthermore, the FBR plans to eliminate the "non-filer" category, meaning non-filers would be classified as tax defaulters, making them subject to penalties and potential action under tax laws.

The FBR has also decided on five key restrictions for non-filers, Express News added, including bans on purchasing property and vehicles, international travel, opening current accounts, and investing in mutual funds.