LAHORE: An awareness seminar on the Tajir Dost Scheme, SRO 350, and other legal amendments was organized here at Lahore Chamber of Commerce and Industry (LCCI) on Tuesday.
The seminar was presided over by LCCI President Kashif Anwar, with Chartered Accountant Umar Zaheer Meer, who represents Pakistan on the Global Tax Forum, enlightening the participants about the Tajir Dost Scheme.
LCCI Vice President Adnan Khalid Butt, Amjad Ali Jawa, Ashraf Bhatti, Zaheer Babar, S.M. Akhtar, along with presidents and general secretaries of various markets and a large number of members, actively participated in the seminar and gained insights into the Tajir Dost Scheme.
In his address, LCCI President Kashif Anwar stated that the Lahore Chamber is making every possible effort to ensure the success of the Tajir Dost Scheme. However, for this scheme to be successful, it is essential that the government consults with stakeholders and incorporates their feedback before implementing the scheme. He mentioned that although the
scheme may not directly affect the Chamber’s members, LCCI is fully committed to its success.
LCCI President Kashif Anwar emphasized the need to include Chambers’ input in measures aimed at expanding the tax net. He suggested that reducing the burden on existing taxpayers can only be achieved by broadening the tax base. He highlighted that offering advice on policies is a responsibility of the Chambers, and addressing issues like audits, penalties, surcharges, bank attachments, inquiries, statements, returns, and withholding taxes is crucial to build trust among taxpayers.
Speaking at the event, Umar Zaheer Meer pointed out that, according to FBR’s data, there are currently thirty-six lakh (3.6 million) small shopkeepers who are not part of the tax net. The Tajir Dost Scheme has been introduced under SRO 420 and is now part of the law. He explained that all shops operating from fixed locations are included in this scheme, and if they do not voluntarily register, FBR is authorized to register them.
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d that under the Tajir Dost Scheme, the tax calculation will be based on the value of the shop, which is 10 percent of the market value of the business premises. LCCI President Kashif Anwar suggested that since every retailer has a commercial electricity meter, taxes should be collected through electricity bills, which can then be adjusted in the annual income tax return. Additionally, he proposed that solid incentives should be provided for registered retailers, such as audit exemptions and lower tax rates, similar to the VTCS introduced by FBR in 2016. These incentives would encourage more retailers and shopkeepers to register under the scheme.
Umar Zaheer Meer explained that under SRO 350, if sales exceed five times the capital, electronic return filing will require the commissioner’s approval. According to this SRO, individuals, association members, or single shareholder companies and directors will be required to submit a balance sheet and undergo biometric verification at NADRA’s e-Sahulat centers ever
y July. Taxpayers who do not meet this requirement will not be allowed to file electronic returns without prior approval from the commissioner. Moreover, the clause in the SRO states that if the seller fails to file sales tax returns within the stipulated time, the buyer will not receive input credit, and the seller’s invoices will be canceled, increasing the buyer’s tax liability.
The seminar also covered details of the Tax Law Amendment Act 2024, which includes changes to the tax appeal system. LCCI President Kashif Anwar and participants emphasized that to make these changes effective and reap the intended benefits, it is crucial to address fundamental issues such as the unlimited powers of tax laws and ensure consultation with the business community, particularly the Chambers.