Pakistan has connected 12,861 large retailers to the Point of Sale (POS) system under reforms linked to the International Monetary Fund (IMF) programme, the Federal Board of Revenue (FBR) said on Monday.
According to the FBR, the POS system aims to reduce tax evasion and increase revenue by digitally recording sales data and monitoring transactions in real time.
The tax authority has connected large shopping malls, textile and leather retailers, and restaurants to the computerized system. Officials said the documentation of businesses is continuing as part of economic reforms.
Under the policy, Tier-1 retailers are required to connect their businesses with the FBR’s computerized system. So far, the connected retailers have a total of 35,761 branches across the country.
The FBR plans to register 40,000 Tier-1 retailers over the next two years. Retailers with annual turnover exceeding Rs500 million will be connected to the digital invoicing system by the end of the current fiscal year.
Officials said real-time sales tax monitoring and electronic invoicing will help improve transparency and tax collection.
The FBR also confirmed that 1,000 large restaurants and 1,490 branches have been connected to the POS system, while 560 Tier-1 retailers from textile and leather sectors have been registered.
Through the POS system, computerized sales data will be directly transmitted to the FBR. Authorities warned that violations could result in fines ranging from Rs500,000 to Rs3 million or business closure.
The government believes the digital system will help expand the tax net and document the economy.
