In a determined move to enforce compliance with the newly introduced Point of Sale (POS) integration system, a tax office of the Federal Board of Revenue (FBR) has taken stringent measures by sealing three retail shops in Karachi for failing to install POS machines.
The Corporate Tax Office (CTO) Karachi sealed three prominent outlets, namely Salam’s and Sons, Kurta Corner, and Bin Dawood, citing non-compliance with the POS integration requirement. This action underscores the FBR’s commitment to ensuring that Tier-1 retailers adhere to the regulations set forth in the Sales Tax Rules, 2001.
The FBR’s POS integration system for Tier-1 retailers aims to monitor and regulate sales transactions of large retailers across the country. The system requires these retailers to integrate their outlets with the FBR’s computerized system for real-time reporting of sales, as specified in the rules.
Dr. Aftab Imam, Chief Commissioner of CTO Karachi, issued directives for the enforcement of POS integration. In line with these instructions, the tax office issued show cause notices to all Tier-1 retailers, urging them to voluntarily integrate their systems with the POS system.
In response to this initiative, several Tier-1 retailers proactively integrated their operations with the POS system. However, those who failed to comply are now facing the consequences, with the sealing of Salam’s and Sons, Kurta Corner, and Bin Dawood being the initial outcome of this enforcement drive.
The FBR’s statement emphasized the importance of compliance with the POS system, stating, “In case of non-integration with the FBR’s computerized system, i.e., POS, strict action shall be taken across the board under the provisions of the Sales Tax Act, 1990.” The sealing of these retail outlets is seen as a warning to other Tier-1 retailers who have yet to integrate with the POS system.
This stringent enforcement is part of a broader initiative to modernize tax administration and increase transparency in financial transactions. By monitoring sales in real time through the POS system, the FBR aims to curtail tax evasion, ensure accurate reporting, and create a level playing field for businesses across various sectors.
The FBR has indicated that the sealing of non-compliant retailers is only the first phase of the POS integration drive. Further actions are expected in the coming weeks as the tax office intensifies efforts to bring all Tier-1 retailers under the umbrella of the POS system, promoting a more accountable and streamlined taxation framework in Pakistan.
