The Pakistan Federal Board of Revenue (FBR) has introduced a new tax procedure called the “Tajir Dost (Special) Procedure 2024” aimed at taxing small traders and shopkeepers. This procedure applies starting from 1 April 2024, with advance tax payments coming into effect from 1 July 2024. Shopkeepers are required to complete their registration by 30 April 2024.
The procedure targets shopkeepers and traders operating within specific city limits, including Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar, with a fixed place of business like a shop, store, warehouse, or office. However, it excludes individuals operating through national or international chain stores.
Under this procedure, advance tax must be paid monthly through a computerized process. The first installment is due on 15 July 2024, followed by subsequent installments on the 15th of each month. The minimum annual advance tax is PKR 1,200.
A 25% reduction in advance tax is possible if the taxpayer pays the full amount before due dates or files the income tax return for the tax year 2023 by the first monthly installment due date.
The procedure also encompasses other tax-related requirements such as income computation, tax collection and deduction, return filing, assessment, and appeals, including provisions for advance tax.
