Karachi, December 13, 2023 – The Federal Board of Revenue (FBR) has sealed multiple branches of Ghani Sons, a prominent uniform manufacturer, for violating Point of Sale (POS) regulations.
The action was initiated by the Corporate Tax Office (CTO) Karachi, a key division of the FBR, as part of its ongoing efforts to ensure compliance with tax laws and regulations.
A notice prominently displayed on the sealed outlets cited the violation of the Sales Tax Act, 1990, and SRO 252(I)/2022 as the grounds for taking such stringent measures. The law mandates that Tier-1 retailers with multiple branches integrate their sales systems with the FBR’s online platform, known as ‘Maloomat.’ Invoices generated through the POS must be legitimate and verified through this portal.
Ghani Sons Uniforms, known for its high-quality uniform solutions across various industries, now faces the closure of its outlets for an indefinite period. FBR officials have made it clear that the sealing will only be lifted when the company demonstrates full compliance with the specified regulations.
The application of online integration for Tier-1 retailers with the tax system, as outlined in SRO 252(I)/2022, signifies the government’s commitment to harnessing technology for more transparent financial transactions. The SRO explicitly outlines the consequences for non-compliance, including the avoidance of monitoring, tracking, reporting, or recording of transactions.
Under the SRO, any person failing to integrate their business, as stipulated by the Sales Tax Act, 1990, may face penalties. Furthermore, those issuing invoices without the required details, such as invoice number, barcode, or QR code, may also be subjected to penalties.
To lift the sealing of business premises, the SRO details a clear procedure. The Commissioner Inland Revenue, having jurisdiction over the case, is tasked with imposing and ensuring the payment of the penalty. The de-sealing order will then be issued within one day of the penalty payment. Additionally, a software audit of all POS machines in the retailer’s branches must be conducted within three working days after the premises are de-sealed.
This development underscores the government’s commitment to enforcing tax compliance and leveraging technology to enhance transparency in financial transactions. It serves as a reminder to businesses, especially Tier-1 retailers, to adhere to the stipulated regulations and integrate their systems seamlessly with the FBR’s online platform to avoid severe penalties and business disruptions.
