Islamabad, September 30, 2024 – In a significant stride towards simplifying Pakistan’s tax compliance regime, the Federal Board of Revenue (FBR) on Monday showcased the much-anticipated Single Sales Tax Return (SSTR) for three pivotal sectors of the economy.
This initiative, aimed at streamlining tax collection and enhancing transparency, marks a major step in the FBR’s ongoing efforts to modernize tax administration in the country.
According to an official press statement, the Design, Development, and Implementation team of the FBR led a detailed demonstration session at its headquarters. The session, focused on the Oil and Gas sector, Exploration & Production (E&P) companies, and the Microfinance Banking sector, drew participation from a wide range of industry stakeholders. The move is being lauded as a forward-looking step towards unifying the tax return process, fostering better compliance, and reducing the complexity associated with sector-specific taxation.
The session was attended by representatives from leading microfinance banks, including Mobilink Microfinance Bank, NRSP Microfinance Bank, U Microfinance, Telenor Microfinance, and Finca Microfinance Bank Ltd. Additionally, key players from the oil and gas industry, such as MOL Pakistan, Mari Petroleum, Government Holding Private Limited, Pakistan Oilfield Limited, Orient Petroleum Inc, Pakistan Exploration Pvt Limited, KUFPEC, Pakistan Petroleum Limited, and others, participated. Prominent tax management professionals from KPMG were also in attendance, reflecting the high level of interest and collaboration between the private sector and the FBR.
FBR’s technical experts from various wings, including PRAL (Pakistan Revenue Automation Ltd), the IT Wing, the Sales Tax & Federal Excise Policy, and the Pakistan Raises Revenue Program, conducted an in-depth technical session, elaborating on the functionalities of the SSTR. The demonstration was a key moment in the FBR’s digital transformation journey, highlighting its commitment to reducing bureaucratic red tape and adopting technology-driven solutions.
Following the success of the telecom sector’s implementation of the SSTR, the FBR is poised to expand this initiative to other sectors. Through extensive stakeholder consultations and close coordination with provincial tax authorities, the SSTR will soon become a hallmark of Pakistan’s tax reform efforts. This harmonized approach is expected to enhance efficiency, reduce duplication of efforts, and offer a more seamless experience for businesses across sectors.
As the FBR continues to innovate and evolve, the introduction of the Single Sales Tax Return for the Oil & Gas, E&P, and Microfinance sectors is being hailed as a crucial step towards aligning Pakistan’s tax system with global best practices.
