Karachi, September 27, 2024 – In a significant move aimed at promoting tax compliance and transparency, the Federal Board of Revenue (FBR) has made sweeping changes to the Point of Sale (POS) Prize Scheme, as announced through SRO 1513(I)/2024 issued on September 26, 2024. The revised scheme primarily targets customers reporting unverified invoices issued by Tier-1 retailers.
This revision marks a departure from the previous mechanism, where customers of integrated Tier-1 retailers could participate in prize draws simply by making purchases from these retailers. The earlier system allowed customers whose names and CNICs (Computerized National Identity Cards) were selected through a computerized draw to claim prizes, irrespective of whether the invoices were verified or not. However, with these amendments, the FBR aims to heighten accountability by requiring customers to report unverified invoices for prize eligibility.
Under the revised scheme, customers must now report unverified invoices through a designated WhatsApp number or via an application provided by the FBR. This modernization replaces the former SMS-based verification method, making the process more accessible and seamless for consumers. To ensure that customers provide accurate details, the FBR has outlined a comprehensive list of information that must accompany the report of an unverified invoice. This includes the customer’s name, CNIC, mobile number, IBAN, proof of digital payment, and a GPS-tagged picture of the business premises where the unverified invoice was issued.
The initiative signifies the FBR’s efforts to ensure that retailers, especially those in the Tier-1 category, are fully compliant with tax regulations. By encouraging customers to report discrepancies, the FBR hopes to minimize the issuance of unverified invoices, which has been a loophole for tax evasion. Furthermore, this move aligns with the government’s broader digitalization agenda, fostering transparency in the retail sector and empowering consumers to play a more active role in the tax collection process.
The consequences of failing to meet the reporting requirements are clear. If a customer is unable to provide proof of digital payment, their right to claim a prize will be forfeited. Similarly, any inaccuracies in the information provided may result in delays in the disbursement of prizes, with the onus falling squarely on the customer.
In cases of reported unverified invoices, the Commissioner of Inland Revenue will authenticate the information to determine the customer’s eligibility for the prize. The Commissioner is also authorized to take further action under the provisions of Section 33 of the Sales Tax Act, adding another layer of scrutiny to ensure the integrity of the prize scheme.
This strategic overhaul of the POS Prize Scheme underscores the FBR’s commitment to fostering a tax-compliant environment and curbing tax evasion in the country.
