Karachi, August 5, 2024 – In a significant move to modernize and streamline the tax system, the Federal Board of Revenue (FBR) has unveiled new provisions aimed at digitizing the supply chain. Announced on Monday, these changes are part of the Sales Tax Act, 1990, and come in the wake of the Finance Act, 2024. The FBR’s Circular No. 3, issued today, outlines the key updates introduced under the recent Finance Act. These reforms are designed to enhance efficiency and compliance within the tax framework by leveraging digital technology. One of the major changes is the introduction of the term ‘Licensed Integrator,’ defined under a new clause (15A) in Section 2 of the Sales Tax Act. A Licensed Integrator is essentially an entity authorized by the FBR to provide electronic invoicing systems. These systems are crucial for integrating registered persons, ensuring that all transactions are processed in a standardized, electronic format. In conjunction with this, a new provision, serial No.25AA, has been added to Section 33 of the Act. This new addition outlines penalties for Licensed Integrators who fail to meet integration requirements. This move underscores the FBR’s commitment to enforcing compliance and maintaining the integrity of the digitization process. Additionally, Section 23 of the Sales Tax Act has been revised to mandate that certain registered persons issue electronic invoices. This…