The Federal Board of Revenue (FBR), in collaboration with Provincial Revenue Authorities, is set to expand the scope of the Single Sales Tax Return (SSTR) system to several new sectors in 2025. According to an official FBR document, the system will be extended to hotels, restaurants, fast food chains, clubs, caterers, digital and IT-based services, ride-hailing services, manpower recruitment agents, and franchise services. The FBR has also announced plans to eventually include all other sectors under the SSTR framework.
As part of its 2025 initiatives, the FBR has scheduled demonstration sessions for service providers in the newly added sectors. These sessions will be followed by User Acceptance Testing (UAT) in collaboration with Provincial Revenue Administrations. UAT sessions for commercial banks and insurance companies are also planned to ensure smooth implementation of the system. Additionally, the FBR will conduct demonstration sessions with microfinance banks, broadband internet service providers, and oil and gas exploration and production companies.
The SSTR system, which was initially launched for the telecom sector in early 2024, allows taxpayers to file a single sales tax return through the FBR’s online portal, eliminating the need to file separate returns with federal and provincial tax authorities. This initiative aims to simplify the tax filing process, reduce compliance costs, and promote ease of doing business.
The FBR highlighted that the SSTR system minimizes data entry, reduces calculation errors, and streamlines tax payments and input tax adjustments across federal and provincial tax authorities. By eliminating the need for reconciliations and payment transfers, the system ensures greater efficiency and accuracy. It also fosters harmonization of tax procedures across federal and provincial revenue authorities, promoting national unity and simplifying tax compliance for businesses.
In addition to expanding the SSTR to new sectors, the FBR has already extended the system to oil and gas exploration companies and microfinance banks. The FBR emphasized that the system will continue to evolve, with plans to harmonize tax laws and procedures across jurisdictions and launch the SSTR for all sectors during the 2025 fiscal year.
The FBR reiterated its commitment to facilitating taxpayers and improving the ease of doing business through innovative solutions like the Single Sales Tax Portal, accessible at www.iris.fbr.gov.pk.
