Change in the Criteria of Registration for Retailers

Vide SRO 738(I)/2015 dated 31.07.2015,  Federal Government has made amendments in Chapter-II (Special Procedure for Payment of Sales Tax by Retailers) of the Sales Tax Special Procedure Rules, 2007. Criteria for registration of retailers was changed through SRO 608(I)/2014 dated 02.07.2014 and retailers and trade bodies were consistently opposing the same. Now FBR has amended the criteria. According to the new criteria, retailers having debit/credit card machine will not be required to be registered, if otherwise not liable to be registered. Now retailers fulfilling any of the following criterias will be required to be registered:

1- Retailers operating as a unit of a national or international chain of stores,

2- Retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks,

3- a retailer whose cumulative electricity bill for the last 12 months exceeds Rs. 600,000/-,

4- Wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods e.g. Metro, Hyper Star etc.

These changes have been made effective from 02.07.2014 (from the date of issuance of SRO 608(I)/2014).