Mohsin Siddiqui (Chief Reporter)
The Federal Board of Revenue (FBR) has made significant strides in its effort to document transactions of Tier-I retailers by integrating 8,949 big retailers into the Point of Sales (POS) system by July 2024. This move, particularly targeting hotels and restaurants, aims to enhance transparency and improve tax collection efficiency.
According to the latest data compiled by the FBR, a total of 8,949 Tier-I retailers have registered with the POS system as of July 2024. Among these, 644 are restaurants, and 506 are leather and textile retailers. This integration is part of the FBR’s broader strategy to bring more retailers under the tax net and ensure accurate reporting of sales transactions.
Interestingly, the FBR’s Biannual Performance Report for the period of July-December 2023-24 presents a different picture. The report reveals that only 434 retailers had integrated with the FBR POS system by December 2023. A breakdown of this data shows that 234 retailers in Punjab, 99 in the Federal Capital Territory, 81 in Sindh, 16 in Khyber Pakhtunkhwa (KP), and 4 in Balochistan had integrated their POS systems with the FBR by that time.
To further streamline tax collection, the FBR has imposed a nominal charge of Rs1 on each POS receipt. This initiative has proven to be highly effective, with the department collecting over Rs1 billion through these charges. FBR Chairman highlighted this success, indicating that the small fee on receipts significantly contributes to the overall revenue.
During the tenure of the Pakistan Tehreek-e-Insaf (PTI) government, the FBR conducted several computerized ballots to incentivize the public to collect and submit POS receipts. These ballots offered prize money to individuals who sent their POS receipts to the FBR, encouraging widespread participation and awareness. Additionally, the FBR undertook efforts to educate the public on the importance of obtaining FBR barcode receipts from retailers, further promoting transparency and compliance.
The integration of retailers into the POS system is a critical component of the FBR’s strategy to enhance tax compliance and transparency. By documenting sales transactions accurately, the FBR aims to reduce tax evasion and ensure that retailers contribute their fair share to the national revenue. This integration is particularly significant for Tier-I retailers, who play a vital role in the economy.
Despite the progress made, the discrepancies between the reported data in the Biannual Performance Report and the latest figures highlight the challenges in achieving comprehensive integration. The FBR must address these discrepancies and work towards a more accurate and unified reporting system. Ensuring that all big retailers, including those in less integrated provinces like Balochistan and KP, are brought into the POS system is essential for achieving the FBR’s goals.
