In a significant policy shift, the Federal Board of Revenue (FBR) has revised the Tajir Dost Scheme, now focusing on larger retailers and high-potential shopkeepers in wholesale and affluent market areas. The new policy suspends the registration of smaller shopkeepers and aims to bring in substantial revenue through data-driven targeting. With an ambitious target of Rs. 50 billion for the 2024-25 fiscal year, the FBR hopes that this new approach will yield greater results compared to the previous fixed-tax policy.
Shift in Focus: Larger Retailers and Wholesalers Take Priority
The FBR has chosen to step away from the door-to-door market surveys and fixed tax per shop for small traders. Instead, it will concentrate on larger businesses, basing tax liability assessments on commercial electricity consumption and returns data. According to Muhammad Naeem Mir, chief coordinator of the Tajir Dost Scheme-2024, the FBR’s data analysis will focus on big retailers, particularly in wholesale and upscale retail markets where revenue potential is high.
“There is no need to go after very small traders depositing negligible amounts in the national treasury,” Naeem Mir stated. The FBR’s primary goal is now on retailers who have substantial income but evade taxes by underreporting or failing to file accurate returns.
Data-Driven Tax Assessments and Analysis of Returns
With this revised policy, the FBR will use electricity consumption and filed tax returns data to identify high-revenue traders, assess discrepancies, and spot cases of potential income concealment. The focus will remain on businesses in prominent areas, while very small shopkeepers will no longer be a priority under the Tajir Dost Scheme. By targeting businesses with higher commercial electricity usage, the FBR aims to ensure that tax contributions reflect the actual size and earnings of each retailer.
Suspension of Fixed Tax Policy
The fixed tax previously imposed on each retail outlet is now suspended, a move designed to reduce the administrative burden and shift resources toward high-potential cases. Instead of conducting door-to-door surveys, FBR teams will conduct detailed analyses of returns filed by registered retailers and wholesalers, aiming to detect income concealment.
Enhanced Revenue Collection and Focused Tax Enforcement
The Tajir Dost Scheme will remain operational, but its implementation now emphasizes larger retail markets and higher-potential shopkeepers. In cases where large retailers are already registered but have filed low or nil returns, the FBR will initiate action for tax recovery. The policy pivot allows the FBR to prioritize cases that offer a substantial revenue contribution, creating an efficient pathway to reach the Rs. 50 billion target for the fiscal year.
