The Federal Board of Revenue (FBR) has, in principle, decided to bring beauty parlors, bakeries, grocery stores, and retail outlets under Invoice Monitoring System.
A high-level meeting chaired by the Chairman FBR, Shabbar Zaidi, decided that on Monday. The move aims to curb the sales tax theft at these stores.
Reportedly, FBR is going to launch a pilot project in Islamabad from next month. Under the plan, the Invoice Monitoring System will be installed at all commercial beauty parlors, bakeries, and grocery stores in the capital to estimate their actual sales.
It would be gradually extended across the country after its test launch in Islamabad.
In the next phase, the bureau intends to upgrade and convert it to a real-time system before extending to other cities.
The system works in a manner that whenever concerned outlets issue a copy of the invoice to a customer, an electronic copy will reach the related FBR office. This will help the bureau keep track of the actual sales and the amount of sales tax charged on each invoice.
A source privy to the development said that the FBR has already installed the system in at least 300 restaurants in the federal capital; and the scope will be extended to other hotels and eateries soon.
The FBR officials expressed satisfaction over the system and hoped that it will help increase the revenue collection.
How the system will work?
A copy of the bill issued to the customer after the installation will electronically reach to the FBR’s concerned department. Through which not only the actual sale of the outlet will be determined but also the sales tax charge on every customer can be monitored.
According to the source, the system has already been installed into 3000 restaurants and would be installed to many more.
They can only monitor every outlet of Sales with Currency less system, or let’s say Online System, which they’re not ready to invest.
CBR has to move very fast with tracking with goldsmith, jewellers, beauty parlours, boutiques, gold smiths for sales tax and federal taxes.
Major retail chains as Imtiaz Super Market never published the Sales Tax on the receipt, to know whether they charge, and whether they pay. The customer should essentially know. The gold smith, beauty parlours, are in similar situation.
How the system will catch the Cash transactions where subject business will not issue the invoices?
This is the case in most of the businesses in Pakistan where they trade in cash without proper invoices connected to the system under govt. Monitoring
they should also take into account the Doctors getting consultation fee on a paper dairy. the income of doctor should be properly taxed.