The Federal Board of Revenue (FBR) has made a significant expansion of its traders’ registration drive, extending it to 42 cities across Pakistan. The ambitious drive aims to register a staggering 3.6 lakh million traders, a move that is expected to boost the country’s tax revenue and bring a significant portion of the informal economy into the formal tax framework.
According to sources, the FBR has already registered approximately 46,000 traders under the Tajir Dost Scheme, which was launched to tax retailers in Pakistan. The scheme has seen a significant response from traders, with 18,931 registering through the Tajir Dost app and 4,566 registering otherwise.
The registration drive, which began on April 1, 2024, has covered major cities like Karachi, Lahore, and Islamabad, as well as smaller towns and cities like Multan, Mardan, Sukkur, Sahiwal, Sargodha, Dera Ghazi Khan, and Gujrat. The FBR has set a target to register all eligible traders by the end of the fiscal year.
The FBR plans to issue a tax SRO based on shop sizes, and has sought comments from traders on the tax SRO. The move is expected to rationalize tax rates and bring more traders into the tax net. The registration drive is part of the government’s efforts to broaden the tax base and increase revenue collection.
The data released by the FBR shows a significant response from traders across the country. Karachi has seen the highest number of registrations, with 5,599 traders registering under the scheme, followed by Lahore with 7,297 registrations, and Islamabad with 2,153 registrations. Other cities like Rawalpindi, Peshawar, Quetta, and others have also seen significant registrations.
Overall, the expansion of the traders’ registration drive is a significant step towards documenting the economy and increasing tax revenue. The FBR’s efforts to engage with traders and wholesalers are expected to yield positive results and contribute to the country’s economic growth.
