MULTAN: The Federal Board of Revenue (FBR) Regional Tax Office (RTO) has identified 85 big retailers falling in the Tier-1 category who have not integrated their businesses with the Point of Sales (POS) system despite several reminders. FBR has allowed the identified Tier-1 retailers to get themselves integrated by March 10, 2022.
According to an FBR list issued, most of these business outlets are located in Multan, Lahore ,Karachi, Faisalabad, and Peshawar regions.
According to details, 364 business outlets in Karachi have been identified as non-integrated with the POS system, while out of the total, 223 outlets are in Faisalabad, 170 in Peshawar, 118 in Bahawalpur, 109 in Sialkot, 85 in Multan, 59 in Lahore, 54 in Abbottabad, 51 in Sahiwal, 48 in Sargodha, 18 each in Quetta and Sukkur, nine in Islamabad, and six big business in Rawalpindi region.
Allowing the identified retailers to get integrated by March 10, the FBR has revealed that the procedure of exclusion from this list of 1,421 identified Tier-1 would apply as laid down in Para 2 of STGO 1 of 2022.
Upon the filing of Sales Tax Return for February 2022, for all notified Tier-1 retailers not having yet integrated, their input tax claims would be disallowed without any further notice or proceedings, creating tax demand by the same amount.
It is pertinent to mention that the government had introduced laws to bring big retailers into the tax net. According to FBR, 3,600 Tier-1 retailers have already integrated their business operations with the POS system. As many as 17,000 outlets with over 19,500 cash counters are fully integrated with the POS system.
