FBR Will Now Register Retailers and Shopkeepers for Taxes Based on Electricity Bills

The Federal Board of Revenue (FBR) has changed the implementation policy of Tajir Dost Scheme by stopping market surveys and registration of small shopkeepers and retailers.  The target of Rs. 50 billion from shopkeepers seems to be unrealistic but the new policy may result in achievement of the said target during 2024-25.   The FBR will now register big retailers and shopkeepers/traders on the basis of analysis of returns and commercial electricity consumption data by suspending existing policy of fixed tax per shop/retail outlet.  The decision has been taken during a meeting held between FBR team of members with Muhammad Naeem Mir, chief coordinator of Tajir Dost Scheme-2024.  Naeem Mir group of media persons that the FBR has principally agreed that there is no need to go after very small traders depositing negligible amount in the national kitty. There is no revenue potential in registration of very small size shops/outlets.  The FBR will only target wholesale markets and posh areas’ retail markets.  The implementation of the policy of door-to-door survey in markets is not required. The FBR will determine tax liability of big shopkeepers based on electricity meters data and stocks verification based on returns filed by big wholesalers and retailers.  The FBR’s teams have started detailed analysis of nil-filers and those shopkeepers who have filed returns and their stock position with commercial electricity data details.  Naeem Mir stated that the FBR has temporarily suspended its policy of registration of small traders and imposition of fixed amount of tax per shop. The FBR will register big retailers and shopkeepers/traders on the basis of commercial electricity meters data by suspending the policy of fixed tax per shop.  Chief coordinator of Tajir Dost Scheme-2024 informed that the FBR has now adopted a targeted approach to register retailers and shopkeepers. The registration of very small size shopkeepers is not the top priority of the FBR under the “Tajir Dost Scheme.”  The scheme would remain intact with major focus on potential shopkeepers indulged in concealment of income and evasion of taxes.  Now, the FBR has prioritized cases where there is a potential of tax. The already registered retailers, filing returns, but concealed huge income, would be approached for recovery of taxes. At the same time, analysis of returns and third-party information would be utilized to recover unpaid taxes from retail outlets.