The Chainstore Association of Pakistan (CAP), the representative body of major retailers in the country, has raised serious concerns regarding the persistent technical and enforcement challenges faced by FBR-POS Integrated Tier-1 Retailers.
On Saturday, CAP Chairman Asfandyar Farrukh formally requested Rashid Mehmood Langrial, Chairman of the Federal Board of Revenue (FBR), to intervene immediately and resolve these critical issues, which are severely disrupting retail operations and posing significant commercial risks.
Despite adhering fully to the FBR-POS system, retailers are struggling with numerous technical issues. These include forced disconnections due to profile expiry, invoices failing to sync with the FBR portal, unannounced changes in POS system versions, and a lack of timely communication regarding system updates. Additionally, retailers are burdened with manual reconciliation of invoices, the absence of bulk download options for POS data, and outdated technical documentation that has not been revised since 2019.
CAP has also highlighted the excessive enforcement actions being taken against compliant Tier-1 retailers. Many retailers, despite following regulations, are facing sudden ‘sealing’ of their businesses due to a single unverifiable invoice—many of which result from system failures rather than retailer negligence. These heavy-handed enforcement measures are harming business reputations, causing financial losses, and negatively impacting tax revenue collection.
Moreover, Tier-1 retailers frequently receive notices or calls from field officers demanding additional tax deposits before filing sales tax returns, even when legitimate input tax adjustments are in place. These arbitrary demands create undue pressure on retailers and discourage further adoption of the FBR-POS integration system, ultimately weakening tax documentation efforts.
The situation has been further complicated by SRO 69(I)/2025, which introduces new compliance requirements that are impractical given the existing system limitations. Retailers are now required to verify every invoice, despite inefficiencies in the FBR-POS system, making compliance increasingly difficult.
“As the official voice of Pakistan’s organized retail sector, CAP remains committed to supporting the government’s tax compliance efforts. However, technical failures and arbitrary enforcement actions are making it extremely difficult for compliant retailers to operate efficiently. Integrated Tier-1 retailers already bear a disproportionate burden of GST, Income Tax, and other levies, which is making them uncompetitive. We urge the FBR to address these issues urgently to restore retailer confidence in the POS integration system,” said Asfandyar Farrukh, Chairman of CAP.
Patron-in-Chief CAP Rana Tariq Mehboob also urged the FBR to revise the Sales Tax Rules 2006 in consultation with the organized retail sector, ensuring that compliance measures are both practical and effective. He further requested a meeting with FBR leadership to discuss these pressing concerns and formulate a workable solution that safeguards business interests while maintaining tax documentation integrity and creating a level playing field.
The Chainstore Association of Pakistan reaffirmed its willingness to collaborate with the government in strengthening Pakistan’s retail ecosystem and establishing a fair, transparent, and efficient tax compliance framework that benefits retailers and the broader economy alike.