FBR Makes POS Systems Mandatory for Larger Traders to Combat Tax Evasion
Islamabad, The Federal Board of Revenue (FBR) has made Point-of-Sale (POS) systems mandatory for all traders with annual business holdings exceeding Rs. 1 lakh (approximately $580).
This decision brings a significant number of retailers under the purview of stricter financial monitoring. Previously, POS systems were primarily required for larger businesses.
The FBR issued an official notification amending the Sales Tax Rules, 2006. This amendment defines "Tier One" retailers as those deducting withholding tax under Section 236H of the Income Tax Ordinance 2001, or exceeding a total yearly withholding tax amount of Rs. 1 lakh. These Tier One retailers now fall under the mandatory POS system implementation.
According to FBR officials, this initiative targets improving transparency and real-time monitoring of sales data for larger traders. By connecting the POS systems to the FBR network, authorities hope to effectively prevent tax evasion and ensure greater accuracy in revenue collection.
The rollout of mandatory POS systems for Tier One retailers is expected to be gradual, with specific timelines and implementation details yet to be announced by the FBR. However, the move represents a significant step towards formalizing the retail sector and combatting financial loopholes that hamper tax collection efforts.
