Under the Sales Tax Act 1990 and FBR notifications, the following retail businesses fall in Tier-1 slab.
- Official retail outlets of national and international brands. It also includes their chain of stores.
- Retail franchises and authorized retailers of national or international brands.
- A retailer who is selling in air-conditioned shopping malls, plaza or center. It does not include kiosks.
- Total electricity bill of retailers during the immediate last 12 months exceeds Rupees twelve hundred thousand (12 lac rupees).
- A business which imports bulk quantities of consumer goods, supplies these items on a wholesale basis to the retailers and it also sells to general end consumers as a retailer.
- A shop, store or any retailer accepts state bank approved online payments and digital transactions, debit and credit cards.
- A retailer that has paid advance withholding tax of rupees more than one hundred thousand (100,000/-) or five hundred thousand (500,000/-) under sections 236G and 236H of the Income Tax Ordinance, 2001 during the last 12 months.
For Tier-1 Retailers, it is mandatory to integrate point of sales with FBR central revenue system. The integration ensures the real-time tracking of collection of sales tax at the revenue systems of the Board.
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