Islamabad, November 4, 2025 – In a major crackdown move, the Federal Board of Revenue (FBR) has unleashed a sweeping new rule to bring thousands of retailers under digital supply chain surveillance, tightening the noose on tax evasion and undocumented trade.
Through SRO 2071(I)/2025, issued on November 3, the FBR has amended Rule 150Q of the Sales Tax Rules, 2006, effectively expanding its digital monitoring network to cover all key players — from manufacturers and importers to wholesalers and retailers.
Under the new amendment, any retailer whose deductible withholding tax under Sections 236G or 236H of the Income Tax Ordinance, 2001 exceeds Rs100,000 or Rs500,000, will now be mandatorily integrated with the FBR’s digital system for tracking sales and purchases.
This reform is part of FBR’s aggressive digital transformation agenda, linking retailers directly into the national sales trail system to ensure transparency, traceability, and compliance.
Sources in the FBR revealed that the decision was fueled by an unprecedented surge in withholding tax collection during FY2024–25. The tax under Section 236G (sales to distributors) skyrocketed by 148%, reaching Rs25.35 billion, while Section 236H (sales to retailers) jumped 119%, hitting Rs37.70 billion compared to the previous year.
Officials say the explosive growth clearly shows massive untapped potential within the retail sector — a gap the new monitoring system aims to close once and for all.
With this move, the FBR has sent a clear message: retailers are now officially on the radar.