FBR to disallow 60pc input tax of identified non-integrated Tier-1 retailers

LAHORE: The Federal Board of Revenue (FBR) would disallow input tax to all the Tier-1 retailers from August 15 in case they are failed to get integrated with it under the Point of Sale (POS) system.

Accordingly, a Sales Tax General Order No.1 of 2022, the Board has decided to integrate all the non-integrated Tier-1 retailers. The process of registration of all the non-integrated retailers of Tier-1 would be completed within the ongoing month.

Meanwhile, the Board has placed a list of identified Tier-1 non-integrated retailers on its web portal with a warning that if these identified Tier-1 retailers fail to integrate by August 15, 2021, their input tax to the extent of 60 percent will be disallowed in the sales tax return for the month of July 2021.

However, if an identified Tier-1 retailer by the FBR feels that it is not a Tier-1 retailer in terms of Section 2(43A) of Sales Tax Act, 1990, it may get itself excluded from the list by applying to the Commissioner by August 10, 2021.

The Board is updating the list every month and taxpayers remaining in the list would be considered as non-Integrated Tier-1 retailers and their input tax to the extent of 60% shall be disallowed, added the STGO.

Copyright Business Recorder, 2021