The government is considering implementing a unique proposal in the budget (2023-24) to impose a ban on cash transactions beyond a certain limit at retail outlets and food retail outlets/restaurants from July 1, 2023.
The Federal Board of Revenue (FBR) is examining whether this proposal is practicable and whether it will also increase documentation or not.
Sources told ProPakistani that the proposal is viable, but the question remains whether it would be practically possible or not. These major restrictions on cash transactions beyond a certain limit would promote electronic payments.
It is recommended that cash transactions beyond a certain limit, e.g., Rs 10,000 and Rs. 5,000, should not be allowed at retail outlets and food retail outlets/restaurants. Instead, non-cash payment methods such as debit/credit cards, mobile payments, or other electronic means should be encouraged for payment.
For this purpose, retail outlets should be required to install Point of Sale (POS) machines that accept non-cash transactions. Additionally, the government should provide incentives to retailers for adopting electronic payment systems.
The restrictions on cash transactions beyond a certain limit and the promotion of electronic payments can bring transparency and accountability to the retail sector.
It will ensure that all transactions are recorded and can be tracked, reducing the likelihood of tax evasion and illicit activities. Furthermore, it will encourage the use of banking services and promote financial inclusion, while also providing actionable information, sources added.
