The Federal Board of Revenue (FBR) and all the Provincial Revenue Authorities/Board will extend the scope of a Single Sales Tax Return (SSTR) to hotels, restaurants, Fast Food Chains, Clubs, Caterers, Digital or IT Based Services, Ride-Hailing Services, Manpower Recruitment Agents and Franchise Services during 2025.
According to the FBR document for 2025, the SSTR will eventually be extended to all other sectors.
The FBR has planned key activities for 2025, including demonstration sessions with Microfinance Banks, Broadband Internet Service Providers, and Exploration and Production (Oil and gas), followed by User Acceptance Testing by Provincial Revenue Administrations. User Acceptance Testing (UAT) sessions for Commercial Banks and Insurance Companies will be held in collaboration with the PRAs.
In 2025, Demonstration Sessions have been planned for the following service providers: hotels, restaurants, Fast Food Chains, Clubs, Caterers, Digital or IT-based services, Ride-Hailing Services, Manpower Recruitment Agents, and Franchise Services.
The SSTR will be extended to all other sectors in due course of time.
Other initiatives included UAT for service sectors across jurisdictions; harmonization of Laws & Procedures and launch of SSTR for all sectors across jurisdictions during FY 2025
The FBR has extended the scope of a Single Sales Tax Return (SSTR) to additional two sectors i.e. oil and gas (exploration and production) companies and microfinance banks.
The FBR had launched a single sales tax return (tax period of January 2024) for the telecom sector filed in February 2024 through the Single Sales Tax Portal.
According to the FBR’s instructions, in pursuance of the government’s desire to facilitate taxpayers, promote ease of doing business, and reduce compliance costs, FBR has developed a Single Sales Tax Portal/ Return, in consultation with all Provincial Sales Tax Authorities, to simplify the process of filing of sales tax return.
Through the portal i.e. www.iris.fbr.gov.pk, sales tax registered persons shall be able to file a single sales tax return instead of filing separate returns to FBR and each of the different Provincial Sales Tax Authorities. Thus, it will save time and effort besides simplifying the return filing process. It will minimize data entry and address the issues of data and calculation errors.
The system will allow the apportioning of input tax adjustments as well as tax payments across the sales tax authorities, eliminating the need for reconciliations and payment transfers. A great benefit of this system is that it will encourage harmonization of tax procedures across Federal and Provincial Government Revenue Authorities, which will promote national unity, FBR added.
Most restaurants charge 15 percent tax from customers but don’t issue a proper reciept to customers thus keeping the tax to themselves. On challenging same at a big restaurant ‘Tandoori’ in Bahria DHA phase 1 Islamabad, the manager put the blame on the waiter which was rubbish of course. some restaurants are even issuing fake FBR receipts while pocketing the tax. A foolproof system needs to be introduced. Maybe a fixed tax on the standard and capacity of the restaurant otherwise this tax theft will continue as most clients don’t bother to ask about the FBR receipt despite paying the 15 percent extra to the restaurant.