The Federal Board of Revenue (FBR) is set to integrate Fast Moving Consumer Goods (FMCG) manufacturers, wholesalers, and distributors into the Digital Invoicing System (DIS) nationwide. This initiative aligns with the directives of Prime Minister Shehbaz Sharif as part of the FBR’s Transformation Plan. The plan aims to connect approximately 10,000 FMCG entities with DIS, forming a comprehensive network. While the retail stage remains excluded, the inclusion of manufacturers and wholesalers is expected to enhance monitoring of sales tax and curb substantial revenue leakages.
The FBR has previously linked tier-1 retailers with the Point of Sale (PoS) system. However, the PoS system has not yet achieved its full potential in minimizing tax leakages. Efforts to improve the system include its overhaul for hotels and restaurants in Islamabad, coupled with a pilot project offering rewards for reporting fake receipts.
The upcoming DIS will cover FMCG sectors such as wheat flour mills, beverages, food items, and bakery products. By focusing on the manufacturing and wholesale levels, the FBR aims to accurately track sales and prevent annual tax evasion amounting to billions of rupees.
Additionally, the FBR has invited input from stakeholders to shape the 2025-26 budget. The proposals aim to broaden the tax base, integrate the entire business value chain into the GST framework, and promote progressive taxation by targeting wealthier classes. The FBR also seeks to phase out tax concessions and exemptions, simplify tax laws, improve taxpayer facilitation, and address procedural inefficiencies. These measures are expected to reduce tax arbitrage, enhance economic efficiency, and eliminate distortions within the tax system.