Procedures for textile and leather industries have been issued by Pakistan’s Federal Board of Revenue (FBR) to avail reduced sales tax rate of 6pc by integrating their supplies with its online system. The facility would be available subject to certain terms and conditions and in case of failure, the FBR would impose a sales tax rate of 9pc.
The integrated units will be notified and their outlets from where the goods are intended to be sold and avail the reduced rate of sales tax.
Full information will be provided through this integrated system from each point of sales (POS) of a unit by generation of online sales invoices and buyers details to verify in case of refunds and input or output adjustments.
To avoid misuse, FBR has incorporated a strong audit mechanism to check sales invoices as well. An integrated supplier, who is found to have tampered with the system or made sales otherwise than the prescribed devices or who contravenes any of the provisions, will no more be eligible for the reduced rate.
