FBR Introduces Monthly Tax for Small Shopkeepers and Retailers in 42 Cities

The Federal Board of Revenue (FBR) has issued fixed monthly tax payments (ranging between Rs. 100 and above Rs. 20,000) for small shopkeepers and retailers registered in 42 big and small cities. Based on the location of the shops, the FBR has issued market/area-wise- Indicative Income, Indicative Income Tax, and Monthly Advance Tax to be paid by small traders. The FBR has issued an S.R.O. 1064 (I)/2024 to amend Tajir Dost Special Procedure, 2024. The scheme would be applicable to  Abbottabad; Attock; Bahawalnagar; Bahawalpur; Chakwal; Dera Ismail Khan; DG Khan; Faisalabad; Ghotki;. Gujranwala;  Gujrat; Gwadar; Hafizabad; Haripur; Hyderabad; Islamabad; Jhang; Jhelum; Karachi; Kasur; Khushab; Lahore; Larkana; Lasbela; Lodhran; Mandi Bahauddin; Mansehra; Mardan; Mirpurkhas; Multan; Nankana; Narowal; Peshawar; Quetta; Rahim Yar Khan; Rawalpindi; Sahiwal; Sarghoda; Sheikhupura; Sialkot; Sukkur and Toba Tek Singh. The revised scheme revealed that 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 Rs. 1,200 per annum. The monthly installment of tax to be paid by the “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. You can view the SRO Below.