The Federal Board of Revenue (FBR) has allowed customers to get five per cent cash back on sales tax paid on purchases from tier-1 retailers that are integrated with the FBR’s online system.
The amount of 5pc of the sales tax paid to the integrated retailers can be redeemed through FBR’s wallet account.
According to a notification, an important amendment was made into the Sales Tax Act, 1990 through Finance Act, 2019, under which the customers of tier-1 retailers are entitled to receive cash back of up to five per cent of the tax involved.
The FBR, after one and a half years of the introduction of the law, has launched procedures to pay pack the customers of tier-1 retailers.
According to the procedure, customers are required to sign up to the Tax Asaan mobile application of the FBR. By this way, the customers will create an FBR wallet account.
The customers are required to verify the electronically generated invoice through the mobile application.
As soon as the electronically generated invoice is verified, the system shall automatically calculate the five per cent amount of the tax paid on the invoice, according to the procedure.
Tier-1 retailers have been defined as retailers who are operating as a unit of a national or international chain of stores; operating in an air-conditioned shipping mall, plaza or center, excluding kiosks; a retailer whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs1.2 million.