ISLAMABAD: The Federal Bureau of Revenue (FBR) in Pakistan has mandated the installation of point of sales (POS) systems for smaller businesses by July 1, 2024, according to S.R.O. 428 (I)/2024 issued on Friday.
This directive encompasses various sectors, including private educational institutions, large and medium-sized retailers, slimming and fitness centers, beauty parlors, transporters, accountants, clinics, laboratories, gyms, swimming pools, marriage halls, and similar establishments.
In a move aimed at broadening the tax base, the FBR appears to be targeting medium-sized enterprises while providing exemptions to small shop owners. The order stipulates that POS installation will be obligatory for restaurants, hotels, motels, guest houses, marriage halls, marquees, and clubs (including race clubs), with exemptions granted to establishments without air conditioning.
Similarly, transporters offering inter-city travel services with a fleet of five or more air-conditioned vehicles will be required to install POS. The new regulation also applies to personal care services provided by beauty parlors, clinics, slimming clinics, massage centers, and pedicure centers, with exemptions for businesses operating without air conditioning.
All medical service providers charging Rs500 or more per patient, including dentists, physiotherapists, plastic surgeons, hair implant surgeons, and veterinary doctors, must install POS systems. Pathological laboratories, medical diagnostic laboratories, courier services, and cargo services are also subject to the POS rule.
Health clubs, gyms, physical fitness centers, swimming pools, and multipurpose clubs operated by civilian or non-civilian administrations are required to implement POS systems. Photographers, videographers, and event managers charging Rs50,000 per event must bill clients using POS.
Accountants, including chartered accountants and cost and management accountants, are also mandated to set up POS systems. Additionally, private schools, colleges, universities, professional institutes, and vocational training centers charging a fee of Rs1,000 per child must install POS by the specified date.
Retailers, including manufacturer cum-retailers, wholesaler-cum-retailers, and importer-cum-retailers, are included in the directive, with exemptions provided for retailers operating shops smaller than 1,000 square feet or with electricity bills not exceeding Rs12,000 over twelve consecutive months. The SRO also extends to money exchange companies.
