FBR posts officials at retail outlets for sales monitoring

FBR posts officials at retail outlets for sales monitoring

KARACHI: The Federal Board of Revenue (FBR) has initiated action against big retailers by posting tax officials at business premises for monitoring of sales.

Corporate Tax Office (CTO) Karachi, an arm of the FBR, has posted its staff at eight outlets of a big retailer for checking sales, purchase and production of saleable goods.

The tax office posted its staff at eight outlets of Clifton Nimco Private limited under Section 40B of the Sales Tax Act, 1990.

Sources said that it was major step taken by the tax authorities to check tax evasion at retail level.

They said that the step was taken on the directives of Dr. Aftab Imam, chief commissioner inland revenue in order to assure the retail unit is making true declaration of its sales.

The tax office also enforced sales tax rules to install point of sale (POS) at the outlet, which is mandatory for big retailers.

Installing POS machine is mandatory for all retailers falling under category of Tier-1 retailers.

One of the major changes brought through the Finance Act, 2021 that all those outlets accepting debit and credit cards are required to integrate their sales with the FBR.

The sources said that the team of the tax officials would depute till gathering of require information to ascertain the sales and income of the outlet.

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