Islamabad: The Federal Board of Revenue (FBR) has issued a major directive mandating a wide range of businesses to integrate their operations with its online system in a move aimed at strengthening documentation, transparency, and tax compliance nationwide.
The directive was issued through SRO 288(I)/2026, proposing amendments to the Income Tax Rules, 2002. Under the revised framework, service providers, retailers, and educational and medical institutions must digitally link their billing and transaction systems with the FBR to enable real-time reporting of sales and services.
Businesses required to integrate include restaurants, guest houses, motels, hostels, marriage halls, marquees, clubs — including race clubs — and inter-city road transport operators. However, non-air-conditioned facilities and transporters operating fewer than five vehicles have been granted exemptions.
Courier and cargo services, beauty parlors, personal care clinics, slimming centers, massage and pedicure services are also covered, subject to exemption for non-air-conditioned premises. The notification further extends to medical practitioners such as dentists, physiotherapists, plastic surgeons, hair transplant specialists, veterinary doctors, and diagnostic laboratories, including X-ray, CT scan, and MRI centers. Private hospitals and medical care centers are also required to comply, except practitioners charging less than Rs500 per patient.
Health clubs, gyms, swimming pools, and multipurpose clubs — including prominent institutions such as Lahore Gymkhana, Islamabad Club, Karachi Gymkhana, Chenab Club, Royal Palm Golf and Country Club, and Lahore Polo Club — have also been brought into the mandatory regime regardless of their administrative status.
Photographers, videographers, and event managers must integrate their systems unless their per-event fee is below Rs50,000. Chartered accountants, cost and management accountants, foreign exchange dealers, exchange companies, and private educational institutions — including schools, colleges, universities, and vocational centers — are also covered, except where monthly fees per student are below Rs1,000.
Retailers falling under the mandatory integration include manufacturer-cum-retailers, wholesaler-cum-retailers, and importer-cum-retailers, particularly those operating within national or international chains, air-conditioned shopping malls, outlets exceeding 1,000 square feet, businesses with annual electricity bills above Rs1.2 million, or those dealing in bulk consumer goods.
The initiative forms part of the FBR’s broader digital transformation strategy aimed at curbing underreporting, improving real-time monitoring of transactions, and expanding the tax base through enhanced technological oversight.
