Karachi: The Federal Board of Revenue (FBR) on Wednesday notified a major tax incentive for top-tier retailers who have integrated their transaction systems with the tax authority’s point of sales (POS) mechanism for recording sales in real-time, according to news sources.
As per the new incentive, the big retailers that have integrated the POS systems will now be able to input tax adjustment – which is adjustable against the output tax. The officials in the Regional Tax Office-II, Karachi have said that the development is aimed to encourage the top-tier retailers to reveal their transactions in real-time.
The POS integration was made mandatory for the top-tier retailers (defined as the tier-1 category of retailers under the Sales Tax Act, 1990). Furthermore, the deadline for the integration was extended to April 30 amid the ongoing coronavirus lockdown.
Previously, the FBR extended the opportunity of input adjustments and refunds to oil marketing companies and petroleum refineries, electrical energy sector, including exports, fertiliser manufacturers and zero-rated suppliers – given that the value of such supplies exceeds 50% of the value of all taxable supplies in a tax year.
Furthermore, the gas distribution companies, telecommunication services, Pakistan Steel Mills and Bin Qasim have been granted 100% input adjustment.
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