The Federal Board of Revenue (FBR) has made it mandatory for distributors and retailers to integrate their businesses with the FBR system if their deductible monthly withholding tax exceeds Rs. 100,000 for distributors and Rs. 500,000 for retailers.
The FBR issued SRO.2071(I)/2025 on Tuesday, specifying that failure to comply may result in penalty notices. The move aims to strengthen tax compliance and streamline the tracking of sales transactions.
Under the Sales Tax Rules, 2006, new sub-rule 150Q(3) now requires that retailers and distributors exceeding the set tax thresholds integrate their invoicing systems with the FBR. Section 236-G covers advance tax on sales to distributors, dealers, and wholesalers, while section 236-H deals with sales to retailers.
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The FBR’s notification emphasizes that businesses not integrated into the system will face strict penalties, signaling a more rigorous approach to enforcing tax compliance across the country.
