Islamabad, September 26, 2024 – In a significant move aimed at simplifying the tax filing process and improving ease of business in Pakistan, the Federal Board of Revenue (FBR) has formed a new committee to oversee the design, development, and implementation of a single sales tax return (SSTR) system for all sectors. This initiative is part of the FBR’s ongoing reforms to streamline tax procedures across multiple jurisdictions.
According to a notification issued by the FBR on Thursday, the decision to establish the committee was made following directives from the FBR Chairman, who emphasized the need for a unified platform for sales tax returns to ease the compliance burden on businesses. The Single Portal will allow businesses operating in different sales tax jurisdictions to file their returns through a single, unified system.
The new committee has been reconstituted to replace the one set up in October 2023, which was focused on developing an SSTR for the telecom sector. The FBR has already implemented the single portal for telecom, and the goal now is to extend the SSTR to all sectors by May 31, 2025.
The committee, composed of both senior FBR officials and technical experts from Pakistan Revenue Automation Limited (PRAL), will lead the design and execution of this nationwide system. The SSTR initiative is part of the broader reforms under the Pakistan Raises Revenue Program (PRRP), which aims to modernize tax collection and make compliance easier for businesses.
Committee Structure
The newly reconstituted committee comprises two main teams: the Supervisory Team and the Implementation Team.
Supervisory Team:
1. Ardsher Saleem Tariq (IRS/BS-21) – Member (Reforms & Modernization), FBR
2. Aamer Amin Bhatti (IRS/BS-20) – Chief (ST&FE) IR-Policy Wing, FBR
Implementation Team:
1. Zain-ul-Abidin Sahi (IRS/BS-20) – Chief (IT Systems), FBR, and Head of Implementation
2. Ms. Mahwish Khan (IRS/BS-18) – Second Secretary, Business Process Reengineering, FBR
3. Fariduddin Khan (AOST/BS-18) – Second Secretary, Withholding Tax (WHT), FBR
4. Faisal Sulaiman – Senior Business Analyst, PRAL
5. Shahid Sharif – Manager (Development), PRAL
Coordination & Support:
1. Muhammad Khalid Jamil (IRS/BS-20) – Director Program, PRRP, FBR
2. Ms. Sadia Akmal (IRS/BS-19) – Additional Director, Coordination & Internal Communication, PRRP, FBR
Responsibilities and Timeline
The committee is tasked with ensuring that the Single Portal for filing sales tax returns is fully developed by December 2024, with implementation across all sectors and jurisdictions set for May 31, 2025.
The Terms of Reference (TORs) for the committee are as follows:
1. Outreach – The committee will engage with chambers of commerce and various trade bodies to inform and involve them in the development process.
2. Stakeholder Consultation – The committee will hold consultations with all relevant stakeholders, including representatives of taxpayers, field formations of the FBR, and Provincial Revenue Administrations (PRAs) to ensure that concerns are addressed.
3. Supervision and Transition – The committee will supervise software development, User Acceptance Testing (UAT) by PRAs and taxpayers, and manage the transition from the existing sales tax return system to the new SSTR for all sectors.
The FBR noted that the committee has the authority to bring in additional resources from both the FBR and PRAL for consultation with various stakeholders and provincial authorities, as necessary.
Objective: Simplifying Compliance
The Single Sales Tax Return system is expected to significantly reduce the compliance burden on businesses by allowing them to file their sales tax returns through a single portal, irrespective of the sector or jurisdiction they operate in. This step is seen as critical to enhancing the ease of doing business in Pakistan and is part of the government’s larger agenda to modernize and streamline tax administration.
With a clear timeline set for the development and implementation phases, the FBR is aiming to make tax compliance smoother, ultimately contributing to a more business-friendly environment in the country.
