Karachi, May 12, 2025 – The Overseas Investors Chamber of Commerce and Industry (OICCI) has recommended that the Federal Board of Revenue (FBR) install Point-of-Sale (POS) systems at all airlines and travel agencies in Pakistan, as part of its proposals for the upcoming 2025-26 federal budget.
This move, the OICCI believes, would enhance transparency and improve tax collection, particularly from non-filers engaging in foreign travel.
According to the OICCI, a large number of foreign travelers routinely book business and economy class flights, often without declaring income or filing tax returns. The organization has suggested that income tax should be automatically collected from non-filers at the time of purchasing international air tickets. This would be similar to the mechanism under Section 236L of the Income Tax Ordinance, 2001, which covers tax deduction on foreign travel by non-filers.
The OICCI’s proposal includes the implementation of POS systems that would be integrated with FBR’s real-time monitoring infrastructure. These POS systems, when installed at both airlines and travel agencies, would allow tax authorities to track high-value travel expenditures and enforce compliance more effectively.
In addition to this, the OICCI recommends strict enforcement of Section 114B(2)(d) of the Income Tax Ordinance to ensure non-filers are compelled to submit returns. Making the National Tax Number (NTN) mandatory for opening or maintaining bank accounts and for carrying out significant financial activities—such as vehicle purchases, property transactions, foreign travel, and luxury memberships—is also part of the OICCI’s suggestions.
To further support these efforts, the OICCI advises that cash deposits and withdrawals by non-filers be monitored by a dedicated FBR wing in coordination with the Financial Monitoring Unit (FMU) of the State Bank of Pakistan.
These measures, according to the OICCI, will promote a culture of tax compliance, increase documentation of the economy, curb tax evasion in the high-cash travel sector, and ultimately lead to fairer revenue generation and stronger governance.