In 2025, the Federal Board of Revenue (FBR) will expand the Single Sales Tax Return (SSTR) system to include many new sectors. These include hotels, restaurants, ride-hailing services, IT services, and more. This initiative will simplify the process for businesses in these industries to file their taxes. Here’s everything you need to know about these changes.
What is the Single Sales Tax Return (SSTR)?
The SSTR is a system that allows businesses to file a single tax return instead of separate returns to the FBR and various Provincial Revenue Authorities (PRAs). This system saves time, reduces errors, and makes tax filing easier for businesses.
Sectors to be Added in 2025:
In 2025, the following sectors will be included in the SSTR system:
- Hotels
- Restaurants
- Fast Food Chains
- Clubs
- Caterers
- Digital/IT Services
- Ride-Hailing Services
- Manpower Recruitment Agents
- Franchise Services
FBR Plans for 2025:
The FBR has outlined a series of activities for 2025, aimed at ensuring smooth implementation of the SSTR. Some of the main activities include:
| Activity | Description |
|---|---|
| Demonstration Sessions | FBR will hold sessions for businesses in hotels, restaurants, fast food, and other sectors to explain the new tax system. |
| User Acceptance Testing (UAT) | FBR will test the system with banks, insurance companies, and other sectors to ensure everything works well. |
| Harmonization of Laws & Procedures | The government will work to align tax laws across different regions to make filing easier. |
| Launch of SSTR for All Sectors | The final goal is to include all sectors, not just the ones listed above, in the SSTR system. |
Benefits of the Single Sales Tax Return:
The SSTR system will make tax filing much easier for businesses. Here are the main benefits:
- One-Stop Filing: Instead of submitting separate returns to the FBR and each Provincial Revenue Authority, businesses will only need to file one return through the FBR portal.
- Saves Time and Effort: The system is designed to reduce data entry errors and prevent mistakes in tax calculations.
- Improved Tax Compliance: With the system handling input tax adjustments and payments automatically, businesses will spend less time on administrative work.
- Harmonized Tax Procedures: The system will help unify the tax processes across the federal and provincial governments, making it easier for businesses to comply with tax laws nationwide.
Expansion of the SSTR System
Besides the sectors mentioned above, oil and gas companies and microfinance banks are also being added to the SSTR system. This is a part of the FBR’s ongoing effort to make tax filing easier for all businesses, regardless of the industry they operate in.
The SSTR system started with the telecom sector in January 2024, and it has now expanded to include several new sectors for 2025.
How Will the System Work?
The system will allow businesses to file their returns through the FBR portal (www.iris.fbr.gov.pk). This means:
| Feature | Benefit |
|---|---|
| Single Return Filing | Businesses will file just one return for all tax authorities. |
| Automatic Data Transfer | The system automatically shares the data with different tax authorities, making the process smoother. |
| Harmonized Tax System | The tax system will be more consistent across the country, reducing confusion for businesses. |
Why is This Important?
This change is part of the government’s ongoing efforts to simplify tax filing and reduce compliance costs for businesses. By making the tax system more efficient, the government hopes to encourage greater tax compliance, which will benefit the overall economy. It also promotes unity between the federal and provincial governments by aligning tax laws and procedures.
Summary
The expansion of the Single Sales Tax Return (SSTR) system to sectors like hotels, restaurants, and ride-hailing services is a significant step toward making tax filing easier for businesses in Pakistan. By simplifying the process, the FBR aims to save businesses time, reduce errors, and make tax compliance more efficient. As more sectors join the system, the tax process will become even easier for all industries.
