The Federal Board of Revenue (FBR) is expected to bring major changes to its Tajir Dost Scheme, designed to register shopkeepers and retailers across Pakistan.
The revision aims to align the scheme with a commitment to the International Monetary Fund (IMF) to collect Rs 50 billion in tax revenue by the end of the fiscal year after the initial approach fell short of expectations.
In the first quarter, the scheme’s target of Rs 10 billion was missed, with only Rs 1.7 million collected. Now, the FBR will shift its focus to large retailers and high-value markets using financial data, tax records, and commercial electricity usage as key indicators, instead of the previous fixed tax model applied to each shop.
“We aim to focus on areas with greater revenue potential,” noted an FBR official, explaining that wholesale markets and upscale retail zones will be prioritized under the revised plan.
One of the most significant updates involves suspending registration for smaller traders, focusing instead on high-revenue segments.
According to FBR sources, the new approach will rely on data-driven insights rather than physical market surveys or a uniform tax rate per shop. This move also eliminates the need for a flat tax collection from each shop, which had previously been applied regardless of the retailer’s size or revenue.
The IMF’s endorsement of these changes remains uncertain, given that the initial fixed tax model did not achieve its revenue targets. For the second quarter, the FBR has a goal of collecting Rs 23.4 billion through the scheme, with hopes of meeting the annual target by focusing on retailers identified through credible evidence of tax evasion.
The revised policy was discussed during a meeting between FBR officials and Muhammad Naeem Mir, chief coordinator of the Tajir Dost Scheme-2024, at the FBR office.
The data-driven strategy marks a significant shift, and the FBR is optimistic about its potential to increase compliance among larger retailers while meeting IMF’s revenue expectations.