Karachi: The Federal Board of Revenue (FBR) has issued a list of 114 unregistered retailers (Tier-1) and decided to take action against these big retailers for not integrating with the FBR’s Point of Sale (POS) system.
According to the statement released by the country’s tax collection body, these 114 retailers are operating out of the documented regime and not depositing collected sales tax from consumers into the national kitty.
The board has decided to raise sales tax demand against these big retailers (Tier-1), who do not integrate with the FBR’s POS system by the deadline of August 10, 2022.
Last month, the FBR issued a list of 101 big retailers (Tier-1), which are required to be integrated with the FBR’s POS system and were denied 60 percent input tax credit in case of non-integration.
FBR has stated that the input tax claim of all aforementioned Tier-1 retailers would be disallowed upon filing the sales tax return for the month of August 2022.
The FBR’s notification also stated that in order to operationalize this provision of law, a system-based approach has been adopted.
Tough Times ahead