The Federal Board of Revenue (FBR) has made it mandatory for distributors and retailers to integrate their businesses with the FBR’s digital system if their monthly deductible withholding tax exceeds Rs. 100,000 and Rs. 500,000, respectively.
The directive was issued through SRO 2071(I)/2025, released in Islamabad on Tuesday.
The FBR specified that distributors with a monthly deductible withholding tax above Rs. 100,000 and retailers with more than Rs. 500,000 must now link their systems with the Board’s monitoring network.
Under the Income Tax Ordinance, Section 236G pertains to advance tax on sales to distributors, dealers, and wholesalers, while Section 236H covers advance tax on sales to retailers.
According to the notification, the amendment has been made under the powers granted by Section 50 of the Sales Tax Act, 1990, read with Sections 22 and 23. A new sub-rule has been added to Rule 150Q of the Sales Tax Rules, 2006, making system integration compulsory for businesses crossing the specified withholding tax thresholds.
The move aims to expand documentation, enhance tax compliance, and strengthen digital monitoring of commercial transactions within the supply chain.
Again like salaried class it will be implemented on distributors and retailers such as Marts those who have tellers machine installed and paying tax of half or half heartedly but Qasai, Milk wali, naan shop, Darzi, dhobi, Tehkedars, middle men in various professions like fruits and vegetables, poultry are enjoying, they should included in tax net.
please stop parallel cash driven system which is very strong and contributes more than 60% of total countries retail outlets.
In Pakistan is the big problem for corporate because small city and district level city can’t deduct withholding tax so corporate facing big problem so we requested to plz take action against local suppliers to register their business proper and maintain withholding tax
Bundle of Thanks from all Pakistani’s for such a good correct information.
Nice 👍 pro Pakistan