ISLAMABAD: In line with IMF demands, the government has initiated the Tajir Dost Scheme registration process in six major cities across the nation, encompassing four provincial capitals along with Rawalpindi and Islamabad. The initial phase of the Tajir Dost Scheme roll-out covers Karachi, Lahore, Islamabad, Rawalpindi, Quetta, and Peshawar.
This action coincides with the finance minister’s announcement regarding Pakistan’s forthcoming issuance of a $300 million Yuan-denominated Panda bond, affirming the timely repayment of external debts owing to sufficient foreign exchange reserves.
Commencing from April 1, 2024, retailers will begin registration under the Tajir Dost Scheme, with tax collection slated to commence from July 1, 2024. The Federal Board of Revenue (FBR) will extend tax coverage to online marketplace platforms under this scheme, aiming to integrate one million retailers into the tax system, as stated by a senior FBR official.
According to the Statutory Regulatory Order (SRO) 420(1)/2024 released on Friday, the FBR has published a draft special procedure for small traders and shopkeepers, inviting objections or suggestions within seven days of its official gazette publication.
The draft Tajir Dost Scheme outlines a special procedure under section 99B of the Income Tax Ordinance, 2001, applicable to traders and shopkeepers with fixed business premises within specified cities, excluding certain entities specified by the Board.
The scheme is effective from April 1, 2024, with certain provisions effective from July 1, 2024. Traders and shopkeepers are required to register by April 30, 2024, and comply with monthly advance tax payments as per the prescribed method.
Regarding the Yuan-denominated Panda bond issuance, Finance Minister Muhammad Aurangzeb disclosed plans for an initial sale ranging between $250 to $300 million, with potential subsequent issuances. Pakistan anticipates timely repayment of external debts without adverse effects on the exchange rate, with the rupee expected to remain stable.
Pakistan is considering a new loan program from the IMF, with further details to be determined after the lender’s annual spring meetings. The US has shown support for Pakistan’s efforts in this regard.
Prime Minister Shehbaz Sharif has instructed his finance team to explore options for an extended fund facility from the IMF, acknowledging its inevitability. The IMF stands ready to assist in formulating a new economic program if requested.
Reflecting on past economic challenges, the federal finance minister highlighted the significance of diversifying funding sources, expressing regret over delays in exploring new markets for debt issuance.
(Islamabad51_Newsdesk)
