Retailers Directed to Integrate Systems to Curb Tax Evasion
ISLAMABAD — The Federal Board of Revenue (FBR) has ordered the mandatory installation of Point of Sale (POS) systems in over 14 major business sectors to strengthen tax compliance and enhance documentation of the economy.
According to officials, the directive requires retailers and businesses operating in the notified sectors to integrate their sales systems with the FBR’s centralized monitoring network. Consequently, the move aims to ensure real-time reporting of transactions and prevent underreporting of sales.
The sectors include large retailers, restaurants, electronics dealers, footwear outlets, textile stores, cosmetics sellers, and other high-volume businesses. Authorities have warned that failure to comply with the directive may result in penalties, sealing of premises, or suspension of business operations.
Officials stated that the expansion of the POS regime forms part of the government’s broader strategy to widen the tax base and improve revenue collection. Moreover, the FBR plans to intensify inspections to verify compliance and identify unregistered businesses.
Authorities also encouraged consumers to demand computer-generated receipts bearing FBR verification codes. Customers can verify receipts through the FBR’s online portal or mobile application, which helps ensure that transactions are properly recorded.
FBR Strengthens Enforcement to Boost Revenue Transparency
The FBR emphasized that integrating POS systems will promote transparency, reduce tax evasion, and create a level playing field for compliant businesses. In addition, officials said that digitizing retail transactions will support data-driven policymaking and improve audit mechanisms.
The board reiterated that the initiative aligns with ongoing reforms aimed at modernizing Pakistan’s tax administration. Officials urged business owners in the affected sectors to complete integration within the specified timeline to avoid enforcement action.
