The Tajir Dost scheme was the Federal Board of Revenue's (FBR) 2024 attempt to register millions of small shopkeepers and collect a fixed monthly advance tax from them. It drew very few volunteers, the fixed tax was suspended in late 2024, and in the 2026-27 budget the government announced a simpler fixed tax for small retailers to take its place.
If you run a shop today, the practical question is no longer "should I join Tajir Dost?" It is whether you fall under the new regime for retailers with annual sales of up to Rs200 million, and whether you have filed your return. This explainer lays out each step, with the dates and the bodies that announced them.
What the Tajir Dost scheme was meant to do
Pakistan has millions of shops and retail outlets, but only a small share file income tax returns. The scheme tried to fix that by asking shopkeepers to register through an FBR mobile app and pay a monthly advance income tax worked out from the value of their shop's location.
The FBR started with six large cities and then widened coverage to 42 cities. Press reports at the time put the monthly advance tax at between Rs100 and Rs60,000, depending on the area and shop value. The payments could later be adjusted against the shopkeeper's annual income tax liability.
Retailer tax timeline: 2024 to 2026
30 March 2024
The FBR issued SRO 457 setting out special procedures for the scheme.
30 April 2024
The first registration deadline passed with only 75 retailers signed up, as reported by the press.
November 2024
The FBR suspended registration of small traders and the fixed per-shop tax, shifting to large retailers.
March 2025
Business Recorder reported the FBR was considering a fresh registration scheme after Tajir Dost failed.
12 June 2026
The 2026-27 budget proposed a 1% fixed tax for retailers with annual sales up to Rs200 million.
19 August 2026
The government launched a mobile app for small retailers to register and file returns.
Why the scheme struggled
Trade associations in several cities, including the Karachi Chamber of Commerce and Industry, called for the scheme to be suspended, and traders threatened protests. Their complaints centred on how the fixed amounts were calculated and fear of follow-up audits.
Beyond the 75 early registrations, a 2024 report said only 575 shops out of about 64,000 FBR-registered outlets were actually paying under the scheme, with collections of around Rs1.3 million. Meanwhile, the FBR kept integrating large "Tier-1" retailers into its point of sale (POS) system: Business Recorder reported 9,290 by October 2024 and 9,834 by March 2025.
The 2026-27 fixed tax for small retailers
The federal budget presented on 12 June 2026 set out a simpler regime, described in reports as replacing Tajir Dost. As announced and reported:
| Feature | What was announced |
|---|---|
| Who it is for | Retailers with annual sales up to Rs200 million |
| Tax | 1% of annual sales, final |
| Minimum | Rs25,000, paid at the time of filing the return |
| Audits | Participants not subject to routine audits |
| Withholding on purchases | No withholding tax liability on purchases, as reported |
| Large retailers | Tier-1 retailers excluded |
- 1%of annual sales as the fixed tax
- Rs25,000minimum payable at return filing
- Rs200mannual sales ceiling for eligibility
- 3.5mretailers outside the tax net, per officials in June 2026
On 17 June 2026 the National Assembly Standing Committee on Finance reviewed the proposal and approved it. Officials told the committee that more than 3.5 million retailers remained outside the tax net, based on commercial electricity connections, while about 660,792 were registered. They also outlined proposed penalties for not paying, rising from Rs10,000 in the first month to Rs25,000 and then Rs50,000, with closure possible for persistent defaulters.
The Asaan Tajir app and early uptake
On 19 August 2026, Radio Pakistan reported the launch of an app to register small shopkeepers and let them file returns under the new regime. Other outlets referred to it as the Asaan Tajir app.
Uptake has been slow. A review meeting reported on 25 September 2026 heard that 1,929 traders previously outside the tax system had registered, 9,806 shopkeepers were at various stages of filing, and only 428 had submitted returns. A separate report on 23 September put registrations at around 5,000, and said 315 of the first 317 filers were already in the tax system.
What the National Assembly committee said on 4 November 2026
On 4 November 2026, The Nation reported that a National Assembly committee was concerned that retailer participation remained lower than expected, despite extensive consultation with trade bodies. Officials said non-compliant retailers would be liable to penalties as well as their legal duty to file returns, and that the legality of proposed enforcement had been discussed with the Attorney General for Pakistan and the FBR.
A fuller presentation on performance and proposed reforms was due at the committee's next meeting. Expect enforcement to tighten, so it is better to act before notices arrive.
What shopkeepers should do now
You do not need to wait for a notice. Start with your basic registration and return, which helps you get onto the Active Taxpayer List (ATL). Our guide on how to become a filer in Pakistan explains NTN and IRIS step by step.
- Your CNIC (Computerised National Identity Card) and an active mobile number in your name
- Shop address, ownership or rent agreement, and recent commercial electricity bill
- A rough record of annual sales, including digital receipts
- Your NTN (National Tax Number), if you already have one, and IRIS login
- Bank or wallet statements showing business receipts
- A note of any taxes already deducted, for example through electricity bills
- Check whether your annual sales fall under the Rs200 million ceiling.
- Register through the official FBR channel or app, and keep the acknowledgement.
- File your return before the deadline set for the tax year.
- Keep sales records. Accepting Raast QR payments makes this easier, because every sale leaves a bank record.
If you trade as a company or partnership, see how to register a company in Pakistan. For hands-on help, find accountants and tax consultants in Karachi, Lahore or Peshawar on PakistanYP.
Final word
The Tajir Dost scheme is best understood as a failed first attempt: it collected little and was suspended within months. Its successor, the 1% fixed tax for small retailers, is simpler, but participation is still low and Parliament is now asking about enforcement.
Your next step is to get your NTN and return in order, and keep clean sales records. Check the current notifications on the FBR website and, if your shop is not yet online, list it on PakistanYP so customers can find you.
Frequently asked questions
What is the Tajir Dost scheme?
It was an FBR programme launched in 2024 to register small retailers through a mobile app and collect a fixed monthly advance income tax based on shop location and value. It was notified through SRO 457 on 30 March 2024 and later extended to 42 cities. The fixed tax was suspended in November 2024 after very low uptake.
Is the Tajir Dost scheme still active?
In practice it has been superseded. The FBR suspended the fixed per-shop tax in November 2024, and the 2026-27 budget announced a new fixed tax for small retailers, which reports describe as replacing Tajir Dost. Some officials and reports still use the Tajir Dost name for retailer registration, so check FBR notices for the exact legal position.
What is the new fixed tax for small shopkeepers?
As announced in the budget on 12 June 2026, retailers with annual sales up to Rs200 million can pay a final tax of 1% of annual sales, with a minimum of Rs25,000 at the time of filing. Reports say participants would not face routine audits. Tier-1 retailers are excluded and remain under the POS integration rules.
How many retailers registered under Tajir Dost?
Press reports said only 75 retailers had registered by the first deadline of 30 April 2024. Later figures varied, and a 2024 report said just 575 shops out of about 64,000 registered outlets were paying under the scheme. Under the 2026 regime, a September 2026 review reported 1,929 new registrations and 428 returns filed.
How do I register as a retailer with the FBR?
Most shopkeepers start by getting an NTN through the FBR's IRIS portal using their CNIC and mobile number, then file an annual return. Small retailers can also use the app launched in August 2026 for the fixed tax regime. Keep your shop address details and sales records ready, and save every acknowledgement you receive.
What happens if a shopkeeper does not register?
Officials told the National Assembly finance committee in June 2026 that proposed penalties would rise from Rs10,000 to Rs25,000 and Rs50,000 over successive months, with possible closure for persistent defaulters. In November 2026 officials repeated that non-compliant retailers would face penalties. Confirm the penalties in force in the Finance Act and FBR notifications.
Who are Tier-1 retailers?
Tier-1 retailers are larger businesses defined in the Sales Tax Act, such as chain outlets, shops in air-conditioned malls, and retailers above set floor area, electricity bill or turnover levels. They must integrate their point of sale systems with the FBR so each sale is reported. Business Recorder reported 9,834 integrated by March 2025.
Does the fixed tax replace my income tax return?
No. Under the announced regime the fixed tax is paid when you file, so you still need to submit an income tax return. Filing is also what keeps you on the Active Taxpayer List, which affects the withholding rates you pay on property, vehicles and banking. Check the FBR deadline for the relevant tax year.
Can I pay the retailer tax through Raast or online banking?
FBR payments are made against a payment slip (PSID) generated in IRIS or the relevant app, which can be paid through internet banking, mobile banking and many bank branches. Check the payment options shown when you generate the slip, and keep the computerised payment receipt as proof of payment.
Where can I get help with retailer registration?
You can contact the FBR helpline or visit a Regional Tax Office, or hire a tax practitioner. PakistanYP lists accountants and tax consultants by city, so you can compare local options. Ask any adviser to file in your own IRIS account and share every acknowledgement, and avoid anyone who asks for your password.
Source: PakistanYP
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PakistanYP Editorial
The PakistanYP team writes practical guides and news for business owners and customers across Pakistan's provinces, cities and localities.
