FBR Makes Digital System Integration Mandatory for High-Tax Distributors and Retailers

The Federal Board of Revenue (FBR) has made it compulsory for large distributors and retailers to integrate their operations with the FBR’s digital monitoring system. According to the latest notification, distributors with monthly withholding tax above Rs. 100,000 and retailers exceeding Rs. 500,000 are now required to link their systems with the FBR network for transparent tracking of transactions.

The directive, issued through SRO 2071(I)/2025, was released in Islamabad on Tuesday under the Sales Tax Act, 1990, and amendments to Rule 150Q of the Sales Tax Rules, 2006. The integration move falls under Sections 236G and 236H of the Income Tax Ordinance, which deal with advance tax on sales to distributors, wholesalers, and retailers.

An FBR official stated,

“The decision is part of the government’s broader effort to strengthen documentation, promote transparency, and ensure better tax compliance across the supply chain.”

This initiative reflects the FBR’s push toward a digitally connected tax system, reducing tax evasion and enabling real-time monitoring of high-value commercial activities.