Syed Saif Ul Hassan 
Nov 05, 2025
A policeman walks past the Federal Board of Revenue (FBR) office building in Islamabad on August 29, 2018. — Reuters
The Federal Board of Revenue (FBR) has mandated the integration of its digital monitoring system into the operations of large distributors and retailers.
The new FBR requirement for high-taxpaying businesses will affect distributors whose monthly withholding tax exceeds Rs100,000 and retailers whose sales surpass Rs500,000.
The integration of a digital monitoring system into the daily operations of large distributors and retailers aims to help keep track of transactions.
This directive falls under Sections 236G and 236H of the Income Tax Ordinance, which deal with advance tax on sales to distributors, wholesalers, and retailers, TechJuice reported.
This initiative is part of a broader governmental plan to strengthen documentation, promote transparency, and improve tax compliance throughout the supply chain, an official from the FBR stated.
The development implies that the FBR is committed to establishing a digitally connected tax system, expected to reduce tax evasion and facilitate real-time monitoring of significant commercial activities.
The move also reflects the authorities' efforts to modernise and streamline tax processes in Pakistan.
