Distributors & retailers: Business integration with FBR system made mandatory

ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory for distributors and retailers to integrate their businesses with the FBR in cases where a deductible monthly withholding tax exceeds Rs 100,000 for distributors and Rs 500,000 for retailers.

In this regard, the FBR has issued an SRO.2071(I)/2025 here on Tuesday.

Section 236-G is related to the advance tax on sales made to distributors, dealers, and wholesalers, and section 236-H deals with the advance tax on sales to retailers.

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The FBR has fixed amount of deductible monthly withholding tax exceeding Rs 100,000 for distributors and Rs 500,000 for retailers for the integration with the FBR’s system.

According to the notification, in exercise of the powers conferred by section 50 of the Sales Tax Act 1990 read with sections 22 and 23 thereof, the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the Sales Tax Rules, 2006, namely:

In the aforesaid Rules, in rule 150Q, after sub-rule (2), the following new sub-rule shall be added, namely:

“(3) Retailers whose deductible withholding tax under sections 236G or 236H of the Income Tax Ordinance2001 during the immediately preceding period exceeds Rs 100,000, or, as the case may be, Rs 500,000, shall be required to integrate their business for the purposes of clause (g) of sub-section (43A) of section 2 of the Sales Tax Act, 1990,” FBR’s notification added.

Copyright Business Recorder, 2025