Mohsin Siddiqui (Chief Reporter)
On Friday, Federal Board of Revenue (FBR) Chairman Amjed Zubair Tiwana announced that businesses refusing to accept credit or debit card payments would face stringent actions, including the sealing of their premises. This announcement came during a review session of the Finance Bill 2024 by the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwala.
The FBR Chairman elaborated that the decision to seal business premises would be based on the receipt of three daily complaints or five weekly complaints from customers. This move aims to enforce compliance and enhance the transparency of business transactions across the country.
Senator Sherry Rehman raised significant concerns regarding the difficulties consumers face due to the failure of the Point of Sale (POS) systems. She shared instances where retailers did not accept credit card payments, particularly during high-value transactions, citing machine failures. Rehman emphasized that in countries like the UK, even small purchases are easily made with credit cards, underscoring the need for similar efficiency in Pakistan.
Chairman Tiwana assured the committee that the new budget would introduce measures to bring transparency and reliability to the POS system. One of the significant steps includes the licensing of POS software companies and integrating a third-party licensing system. He admitted that the previous POS software was susceptible to fraud, but he reassured that the new system would mitigate such risks.
In an effort to curb tax evasion and ensure compliance, Tiwana announced that shops failing to provide receipts for five POS transactions within a week would be subject to a hefty fine of Rs500,000. This measure aims to encourage retailers to issue proper receipts and maintain accurate transaction records.
The Chairman also mentioned that retailers found guilty of tax fraud would be blacklisted. However, they would have the right to appeal to the chief commissioner, ensuring that businesses have a fair chance to contest any penalties imposed.
Tiwana reassured the Senate Standing Committee on Finance and Revenue that comprehensive steps are being taken to ensure retailers comply with the POS system and accept credit card payments. This move is expected to significantly improve the business environment and protect consumer rights.
