The Federal Board of Revenue (FBR) has operationalized the post of the Member (Digital Initiatives).
According to a notification issued by the FBR on Monday, Mir Badshah Khan Wazir, a BS-21 officer of the Inland Revenue Service, presently posted as a Member (IR-Operations), Federal Board of Revenue (Hq), Islamabad has been assigned the look charge of the post of Member (Digital Initiatives), Federal Board of Revenue (Hq), Islamabad during the leave period of Karamatullah Khan Chaudhry (IRS/BS-21).
The Directorate General of Digital Invoicing and Analysis (DGDIA) would integrate the whole supply chain including manufacturers, dealers, distributors, wholesalers, and retailers. Director General, Directorate-General for Digital Invoicing and Analysis shall report to the Chairman, FBR through Member (IR-Operations), it added.
Directorate-General for Digital Invoicing and Analysis and proposed Synchronized Withholding Agents System would integrate the sales tax supply chain and withholding agents, respectively. The FBR will give incentives to the withholding agents as well as the entire supply chain who would online report their sales and withholding data under the FBR’s new system.
The system will link the sales data of manufacturers, dealers, distributors, wholesalers, and retailers with the FBR’s system. The monthly sales tax information including payments of sales tax would be available to the FBR under the new system. Due to the online availability of data, the evasion of sales tax would not be possible.
The FBR is expected to waive the major condition of monthly filing of sales tax returns and audits for those manufacturers, dealers, distributors, and retailers, who would be linked with the system of the DG Digital Invoicing and Analysis.
In the presence of the availability of online data, the FBR will give concessions to the entire supply chain due to the submission of electronic information on a monthly basis. The FBR’s system would itself generate monthly sales tax returns of the said categories of the supply chain, which would be integrated with the Directorate-General for Digital Invoicing and Analysis.
The exemption from the audit is also under consideration by the FBR for the manufacturers, dealers, distributors, wholesalers, and retailers, who would be linked with the FBR’s system of digital invoicing.
These are very big incentives for the manufacturers, dealers, distributors, wholesalers, and retailers, who would be integrated with the FBR’s new system to be launched, sources maintained.
The point-of-sale system of the FBR would also come under the Directorate-General for Digital Invoicing and Analysis. The data of these taxpayers are regularly entered into the FBR’s system and there would be no need for submission of monthly sales tax returns or audits.
A new Directorate-General for Digital Invoicing and Analysis has been provided in the Finance Act, 2021. Under the new provision, the Directorate-General of Digital Invoicing and Analysis shall consist of a director-general and as many directors, additional directors, deputy directors, assistant directors, and such other officers as the Board may, by notification in the official gazette, appoint.
