FBR Circulars, Notifications & Filing Calendar

Enforcement of electronic fiscal cash registers (POS) and real-time API transmission of sales invoices to FBR servers for Tier-1 retailers and wholesale fast-moving consumer goods distributors under Sales Tax General Order (STGO) No. 01/2024.

Impact: Failure to integrate results in automatic denial of 60% input tax credit for buyers under Section 8B, accompanied by departmental penalties of PKR 500,000 for non-compliant business premises.

Issuing authority (as previously stated): FBR Directorate General of Digital Initiatives

Announced (as previously stated): 15 June 2024; effective: 01 September 2024

Enactment of progressive super tax rates ranging from 1% to 10% on high-earning persons with income exceeding PKR 150 Million under Section 4C. Significant restructuring of withholding tax rates on contractual payments under Section 153.

Impact: Enterprises must review advance corporate tax estimates and quarterly installments under Section 147 to prevent default surcharges under Section 205.

Issuing authority (as previously stated): National Assembly of Pakistan / FBR

Announced (as previously stated): 28 June 2024; effective: 01 July 2024

SRB issued comprehensive circular guidelines clarifying the boundary between taxable telecommunication services and export of computer software under Tariff Heading 9812.2100. Clarifies zero-withholding parameters for documented IT exporters.

Impact: Technology enterprises operating out of Karachi must verify their PSEB registration and Foreign Inward Remittance Advices (FIRAs) to claim full provincial exemptions.

Issuing authority (as previously stated): Sindh Revenue Board

Announced (as previously stated): 12 August 2024; effective: Immediate Effect

The Division Bench maintained that legitimate input tax paid on bona fide raw materials cannot be permanently forfeited under administrative convenience. Directs FBR to process genuine refunds without unconstitutional delay.

Impact: Manufacturing concerns suffering liquidity freezes due to persistent 10% unadjusted input tax can now file expeditious refund petitions citing this benchmark precedent.

Issuing authority (as previously stated): High Court of Sindh (Appellate Division)

Announced (as previously stated): 20 September 2024; effective: Binding Judicial Ruling

The Federal Board of Revenue released official guidelines explaining key structural amendments introduced in Tax Year 2025. Key highlights include the restructuring of salaried tax slabs with a peak 35% rate, the imposition of a 10% surcharge on taxable income exceeding PKR 10 Million, and stringent restrictions under Section 114B barring non-filers from international travel and SIM card operation.

Under Chapter XIV-AA of Sales Tax Rules 2006, registered enterprises in consumer goods, beverages, and industrial chemicals must transmit invoice payloads to FBR APIs in real time to obtain Unique FBR Invoice Numbers (UIN) and QR codes. Invoices without FBR validation cannot be adjusted as input tax by commercial buyers under Section 8(1)(m).

FBR has operationalized strict automated controls in Iris 2.0. Buyers are barred from adjusting input tax under Annexure-A if the corresponding supplier has not filed Annexure-C and discharged sales tax liabilities. Business individuals and AOPs exceeding capital-linked turnover limits must file verified balance sheets to unfreeze sales invoice issuance.

The Federal Board of Revenue has mandated electronic reconciliation of supplier balance sheets and verifiable commercial bank accounts as prerequisites for valid return filing under Section 26 of the Sales Tax Act 1990.

Impact: Corporate and AOP taxpayers with turnover exceeding prescribed thresholds must update their registered business particulars in IRIS. Inability of counter-parties to electronically confirm invoices in Annexure-C may temporarily freeze return submission.

Issuing authority (as previously stated): Federal Board of Revenue (Revenue Operations Wing)

Announced (as previously stated): 07 March 2024; effective: Tax Period July 2024 Onward