ISLAMABAD: The Federal Board of Revenue (FBR) has directed 1,680 Tier-1 (big) retailers to integrate with the FBR’s point of sales (POS) system by May 31, 2024. The FBR has issued a Sales Tax General Order (STGO) No. 01 of 2024 on Wednesday. According to the FBR, the Finance Act, 2019 added sub-section (6) to section 8B of the Sales Tax Act, 1990 (STA, 1990) which provided that input tax of a Tier-1 Retailer“(T-1R)” who did not integrate its retail outlet in the manner prescribed under sub-section (9A) of section 3 of the STA, 1990 during a tax period, would be reduced by 15%. The figure of 15% subsequently raised to 60 percent vide Finance Act, 2021. Technical Release 4/2024: e-integration--Point of Sale (POS) system In order to streamline the process of registration and integration of Tier-1 retailers, the FBR has issued S.R.O 1842(I)/2023, dated 21st December, 2023, whereby retailers, whose deductible withholding tax under section 236H of the Income Tax Ordinance, 2001 during immediately preceding twelve consecutive months has exceeded Rs. 100,000 have been prescribed as Tier-1 retailers under clause (g) of section 2(43A) of the Sales Tax Act, 1990. Such retailers are liable to be registered and integrated with Board’s computerized system for real-time reporting of sales under Sales Tax Act, 1990 and rules made there under. The FBR has issued a new STGO for integration of such retailers who fulfill the…