Islamabad: The Federal Board of Revenue (FBR) has made it mandatory for the retailers operating in 1,000 square-feet-outlets (situated in shopping plazas) to pay a standard rate of 17% General Sales Tax (GST) to the taxation authority, a news sources reported. FBR’s Member Inland Revenue Policy and spokesperson Dr Hamid Ateeq Sarwar recently expressed his views on the matter.
He said that the FBR, through the implementation of its new ‘Tier-1’ GST policy, wanted to collect PKR 2,600 billion under GST imposed on domestic and import fronts, and also by making collections in terms of the Federal Excise Duty (FED).
For FY2019-20, the federal institution has fixed its revenue collection target at PKR 5,550 billion.
According to the official circular issued by the FBR, a new condition has now been added to the definition of ‘Tier-1 retailer’ under the section 2(43A) of the Sales Tax Act of 1990; which entails that all retailers with shops over 1,000 sq ft will fall under the Tier 1 category, and will be liable to pay the revised liability communicated by the tax regime.