Islamabad: The Federal Board of Revenue (FBR) has issued S.R.O. 2071(I)/2025, introducing amendments to the Sales Tax Rules, 2006, to expand the scope of compulsory business integration for retailers. The changes have been made under the powers granted by Section 50 of the Sales Tax Act, 1990, read with Sections 22 and 23 of the same Act.
Under the amendment, a new sub-rule has been added to Rule 150Q, requiring retailers whose deductible withholding tax under Sections 236G or 236H of the Income Tax Ordinance, 2001, exceeded Rs100,000 or, where applicable, Rs500,000 during the preceding tax period, to integrate their businesses with the FBR system.
This means retailers falling within the specified withholding tax threshold will now be required to link their point-of-sale (POS) systems or business operations with FBR’s real-time digital monitoring framework.
The purpose of the move is to strengthen documentation of sales, ensure accurate tax reporting, and enhance transparency in the retail sector. By mandating integration, FBR aims to tighten compliance and minimize revenue leakages arising from undocumented sales.
The amendment is aligned with clause (g) of sub-section (43A) of Section 2 of the Sales Tax Act, 1990, which deals with the definition and requirements for integrated retailers.
Industry experts believe that the step is likely to bring a larger segment of retailers into the documented economy, while also increasing oversight on wholesale-to-retail supply chains. However, business associations may seek clarification on compliance timelines and technical facilitation for newly covered retailers.
