The Federal Board of Revenue (FBR) has produced a list of 114 unregistered businesses (Tier-1) and has decided to take action against these large stores for failing to integrate with the FBR’s Point of Sale (POS) system. According to a statement issued by the state’s bureau of revenue, these 114 businesses are operating outside of the legal framework and are not paying sales tax earned from customers into the national coffers. The board has resolved to increase sales tax demand against these large shops (Tier-1) that fail to connect with the FBR’s POS system by the August 10, 2022 deadline. Last month, the FBR published a list of 101 large retailers (Tier-1) who were compelled to connect with the FBR’s POS system and were denied a 60pc input tax credit if they did not. The FBR has indicated that all of the aforementioned Tier-1 merchants’ input tax claims would be denied when they file their sales tax returns for the month of August 2022. The FBR’s notification further said that a system-based approach was used to operationalize this provision of legislation.