In a bid to maximize tax collection from the retail sector, the Federal Board of Revenue (FBR) has so far integrated 2,560 retailers.
According to the latest data compiled by the FBR, 2,560 big retailers, falling in Tier-1, have been integrated with the FBR system through Point of Sale (POS), so far. The Point of Sale (POS) software system has been installed on 15,500 cash counters at 11,350 branches and outlets of the aforementioned big retailers.
For integration, the retailers have to install a software extension provided by FBR on their sale system, which ensures live reporting of sales tax to FBR’s server.
A meeting was held at FBR Headquarters to review the progress of the integrations of big retailers with the system. The meeting was informed that after the integration of Tier one retailers, a campaign will be started to integrate the retailers that fall in Tier-2.
In case of non-compliance, the FBR is authorized to impose penalties under the law. The retailers would not be entitled to an adjustment of input tax for the entire period in case of non-compliance.
The FBR may also impose fines on big retailers, falling under the Tier-1 category, failing to show their sales transactions on the FBR’s real-time software. The FBR is authorized to impose a penalty of Rs. 5,000 or 3 percent of the amount of tax involved.
FBR may also initiate proceedings to arrest and conduct prosecutions.
It is pertinent to mention that FBR has already launched an awareness campaign on all the mainstream social, electronic, and print media to educate the general public on a prize scheme ballot worth Rs. 53 million to be held every month at FBR Headquarters, Islamabad. This first computer ballot on POS Prize Scheme will be held on January 15, 2022, announcing 1,007 lucky winners.
