Pakistan’s Federal Board of Revenue (FBR) issued Sales Tax General Order No. 7 of 2022 on 5 January 2022 in relation to the 60% denial of input tax for retailers not integrated with the FBR’s online system, which was increased from 15% as part of the Finance Act 2021. The order provides that Tier-1 Retailers that have not integrated by 10 January 2022 will be denied credit for input tax equal to 60% of the amount claimed in the Sales Tax return for the month of December 2021. A list of identified Tier-1 non-Integrated Retailers is provided on the FBR’s website (www.fbr.gov.pk) for this purpose. Where a retailer considers that it does not qualify as a Tier-1 Retailer, an exclusion from the list may be applied for.
Note, similar orders have been issued for previous months, starting in August 2021.
Source Orbitax
