Is the Tajir Dost Scheme in Pakistan on its way out? As of March 15, 2025, whispers are growing that the International Monetary Fund (IMF) has agreed to ditch this retailer-focused tax plan. But here’s the twist: while tax collection has soared, it’s not because of the scheme itself—it’s thanks to a massive hike in the Section 236H tax on non-filer retailers. This shift has sparked debates about fairness, consumer prices, and whether Pakistan’s tax net is really widening.
What Was the Tajir Dost Scheme Anyway?
The Tajir Dost Tax Scheme was Pakistan’s big idea to bring retailers into the tax net. Launched by the Federal Board of Revenue (FBR), it came with an app, visits from field teams, and even automatic National Tax Numbers (NTNs) for shopkeepers. For over a year, the FBR collected data—shop sizes, locations, electricity bills—to rope in retailers across cities like Karachi and Lahore. The goal? Boost tax collection from retailers and hit a target of PKR 50 billion. Spoiler: they collected PKR 400 billion instead. But here’s where it gets tricky.
Why the IMF Might Scrap It
The IMF’s nod to discontinue the Tajir Dost Scheme isn’t because it failed outright—it’s because the FBR’s tax haul got a turbo boost from somewhere else: Section 236H tax. The scheme itself didn’t deliver as planned, but the numbers look good anyway. The IMF seems to be saying, “Your collection’s better, so why keep this app running?” Posts on X hint at this shift, with some noting the scheme’s “design flaws” and others celebrating the FBR’s hefty haul. Curious about your own tax load? Check our Income Tax Calculator to see how you stack up.
The Real Hero: Section 236H Tax Hike
Here’s the game-changer: starting July 1, 2024, the Section 236H tax rate for non-filer retailers jumped from 1% to 2.5%—a 200% increase—while filers stayed at 0.5%. This tax hits when retailers buy goods from wholesalers or manufacturers. With about 90% of Pakistan’s retailers unregistered (non-filers), this hike hit hard. The FBR didn’t need the Tajir Dost app to rake in PKR 400 billion—Section 236H did the heavy lifting. But who’s really paying? Dig into Taxable Slabs to see how this fits into Pakistan’s tax brackets.
How This Tax Trickles Down to You
Think prices haven’t budged? Think again. Manufacturers saw the 2.5% tax on non-filer retailers and bumped up product prices after July 1, 2024, to keep their profits steady. Retailers, mostly unaware of tax filing perks, passed that cost onto customers—you and me. So, that PKR 400 billion tax win? It’s partly coming out of our wallets. Before June 30, 2024, prices were lower; now, the Section 236H tax increase has quietly made everything pricier. It’s a sneaky burden on consumers across Punjab, Sindh, and beyond.
Is This Fair? Retailers vs. Big Factories
Here’s where it stings: non-filer retailers are now paying 2.5% under Section 236H, while big factories might only face a 1.25% turnover tax. That’s right—a small shopkeeper could be taxed double what a giant manufacturer pays. Critics call it an “unfair transaction,” and it’s hard to argue. The FBR’s happy with the cash, but retailers and shoppers are left grumbling. Want to dodge higher taxes yourself? Our Tax Savings Tips has practical hacks to lighten your load.
Why Aren’t Big Companies Speaking Up?
Fast-moving consumer goods (FMCG) giants—like the ones making your soap and snacks—rely on these unregistered retailers. Yet, they’ve stayed quiet about the Section 236H tax impact. Why? The FBR’s seeing green, so there’s no push to rethink this. Without pressure from big players, the policy rolls on, and consumers keep footing the bill. It’s a silent agreement that’s loud on your budget.
What’s Next for the Tajir Dost Scheme?
The IMF’s okay with scrapping the Tajir Dost Scheme discontinuation, but the FBR holds the final call. Pakistan often follows IMF nudges, so don’t be shocked if it’s gone soon. What stays? That beefy 2.5% Section 236H tax on non-filers, higher prices, and a retail sector still mostly outside the tax net. The FBR might tweak things—watch for updates in the coming days. For now, the scheme’s fate hangs in the balance.
What This Means for Pakistan
If the Tajir Dost Scheme ends:
- Tax collection might lean harder on Section 236H, keeping consumer prices up.
- Retailers won’t get nudged into filing taxes, stalling efforts to formalize the sector.
- The fairness debate—small shops vs. big factories—will simmer on.
The FBR’s PKR 400 billion haul looks impressive, but it’s not the win it seems. Non-filer retailers and everyday buyers are carrying the load, while the tax net stays narrow. Wondering how to navigate this mess? Our Tax Savings Tips can help you stay ahead.
The potential discontinuation of the Tajir Dost Scheme shows Pakistan’s tax game is shifting. The IMF’s on board, the FBR’s cashing in, but the real story’s in Section 236H tax hikes and who’s paying the price—literally. Whether you’re a retailer in Islamabad or a shopper in Lahore, this affects you. Stay sharp, check your tax status with our Income Tax Calculator, and keep an eye on the FBR’s next move
