
The Federal Board of Revenue (FBR) has increased documentation requirements for businesses registered for sales tax, including manufacturers, importers, distributors, and wholesalers.
However, under the new rules, these businesses must now submit detailed stock and production data every month.
According to SRO55(I)/2025, issued on Friday, the FBR has introduced two new statements: Annex-J for production data and Annex-Hl for stock statements. These are mandatory for all taxpayers registered for sales tax who supply taxable goods.
FBR introduces monthly sales tax for businesses
Manufacturers will need to provide details of their production and supplies in Annex-J as part of their monthly tax returns. This statement will track goods manufactured and sold during the month.
Similarly, commercial importers, distributors, and wholesalers must submit Annex-Hl, detailing their stock, including goods purchased, imported, and supplied.
The FBR’s goal is to improve transparency and ensure compliance with tax regulations. By requiring businesses to provide monthly updates on production and stock, the authority aims to better monitor the movement of taxable goods and reduce tax evasion.
These new requirements apply to all sales tax-registered entities involved in the supply of taxable products. Businesses are urged to align their operations with the new reporting system to avoid penalties.
The FBR’s decision is part of plans to improve the tax system in Pakistan. However, the government these changes aim to enhance revenue collection and create a more transparent business environment.