FBR Likely to Introduce Another Shopkeeper Registration Scheme in Budget FY26

The Finance Bill (2025-26) will contain a new registration scheme for shopkeepers/traders, taking into account the failed experiment of the Tajir Dost Scheme. Officials informed that the new scheme has been drafted by the Federal Board of Revenue (FBR) and will be announced in the budget (2025-26). Until now, the key features of the new scheme have not been consulted with the traders’ associations and bodies. Around 70,000 to 75,000 shopkeepers/retailers were registered under Tajir Dost Scheme with tax payments in millions. Traders leaders strongly objected to the new scheme with the argument that there is justification of the new scheme after the introduction of section 236G and section 236H in the Income Tax Ordinance 2001 last budget. The advance tax collected on purchases (Section 236G) was reduced from 2 percent (non-filer rate) to 0.1 percent (filer rate). This tax under Section 236G is applicable on purchases made by distributors/dealers/wholesalers from manufacturers/commercial importers. The advance tax collected on sales to retailers by manufacturers/ commercial importers/distributors under (Section 236H) was reduced from 2.5 percent (non-filer) to 0.5 percent (filer). Thus, non-filers have to pay tax of 2 percent and 2.5 percent under section 236G and 236H respectively. The FBR must enforce return filing from unregistered retailers with the help of data from section 236G and section 236H. The revenue potential from section 236G and section 236H is much higher as compared to the Tajir Dost Scheme. Therefore, there is no need for any new scheme, traders’ representatives added.