Islamabad, December 17, 2024 – The Federal Board of Revenue (FBR) has taken a significant step toward enhancing transparency and compliance by integrating the Fast-Moving Consumer Goods (FMCG) sector with its digital invoicing system. This initiative aims to streamline tax collection and improve documentation within the sector.
To implement this integration, the FBR issued Sales Tax General Order (STGO) No. 2 of 2024 on December 17, 2024. The order builds upon the earlier notification SRO 28(1)/2024, dated January 10, 2024, which mandated that all registered entities within the FMCG value and supply chain install an electronic invoicing system as specified under Chapter XIV of the Sales Tax Rules, 2006.
The FBR explained that a phased, system-based approach will be used to operationalize these provisions. In Phase 1, FMCG manufacturers and importers will be integrated into the digital invoicing system. To this end, a list of 107 identified FMCG manufacturers and importers, referred to as integrated suppliers, has been published on the FBR’s official web portal. These entities are required to complete the integration process by December 31, 2024.
Entities that believe they are not part of the FMCG manufacturing or importing category may apply for exclusion from this list. Such requests must be submitted to the relevant Commissioner of Inland Revenue (IR), who will issue an exclusion certificate upon verification. Subsequently, all exclusion certificates will be forwarded to the IR Operations Wing of the FBR.
To ensure smooth implementation, Chief Commissioners-IR are tasked with appointing dedicated focal persons to coordinate with PRAL (Pakistan Revenue Automation Limited) and achieve the integration targets. Additionally, these officials must submit weekly progress reports to the IR Operations Wing.
This initiative underscores the FBR’s commitment to modernizing tax administration and ensuring compliance across key economic sectors. The order, approved by the Member (IR-Operations), is effective immediately and is expected to bolster transparency and efficiency in tax collection within the FMCG sector.