According to sources, the Federal Board of Revenue (FBR) has decided to implement a unified sales tax return for all businesses. Additionally, supply monitoring will be enforced for unregistered businesses.
The FBR plans to extend the Track and Trace system to the tiles sector and may grant additional powers to the Director General of Digital Invoices. In the upcoming budget, it is expected that significant business supply chains will be documented, and a Rs 1 increase in fees is anticipated.
Retailers who fail to implement the Point of Sale (POS) system will face special audits, sources warned. The Track and Trace system will be expanded to the tiles sector, and efforts will be made to link company production with sales tax returns.
This development follows concerns expressed by the International Monetary Fund (IMF) regarding the shortcomings in the implementation of the Track and Trace system by the FBR. The IMF communicated these concerns during recent discussions with FBR authorities about the tax structure and administration.
The IMF has requested a detailed implementation report on the Track and Trace system and set a deadline for its complete adoption across five major sectors in the country. The lender has stated the need for the system to be fully operational by the next fiscal year. While discussions are ongoing at the policy level, both parties have agreed to accelerate reforms to expand the tax net and curb tax evasion.
