Say data contradicts perception as FBR has collected Rs1.6b in POS fee since Aug 2021
Shaikhani said that the FBR must shift from coercive tactics to facilitation-based reforms. photo: file
LAHORE:
The Chainstore Association of Pakistan (CAP) has called for a careful examination of claims that over 80-90% of tier-1 retail branches are disconnected from the Point of Sale (POS) systems.
“The lists available on the FBR website appear to be auto generated around 8:00 am, when the overwhelming majority of physical retail outlets are closed and their POS systems are naturally offline, apart from their e-commerce stores. This creates a distorted snapshot of connectivity status,” the association said in a statement on Saturday.
More importantly, it said, the financial data itself contradicts the perception of systemic disconnection. Reportedly, the FBR has collected Rs1.55 billion in POS service fee since August 2021, in addition to hundreds of billions of rupees in sales tax and income tax from compliant retailers, with substantial increases every year.
“Such sustained and increasing POS-linked fee and tax collection is only possible when systems are integrated and operational. If large-scale or persistent disconnection was truly occurring, these collections would not continue to rise. The revenue trend is clear evidence that the organised tier-1 retail remains functionally connected.”
The association noted that in various instances, temporary disconnections had stemmed from technical or system-side factors rather than deliberate non-compliance by retailers. This position was reinforced in a decision of the Federal Tax Ombudsman Secretariat, where technical considerations were acknowledged. Such findings underline the need to differentiate between operational downtime, system latency and genuine compliance violations.
The earlier POS incentive had also demonstrated that consumer engagement could significantly improve documentation behaviour. Its discontinuation over the past two years has slowed the momentum. Incentive-based compliance mechanisms, combined with technical facilitation, can produce far stronger results than perception-driven narratives.
CAP Patron-in-Chief Tariq Mehboob stated that organised retail was one of the most documented and transparent sectors of the economy and had invested heavily in POS infrastructure across Pakistan. He emphasised that compliance evaluation must be data-driven, time-sensitive and technically accurate to avoid undermining compliant businesses.
CAP Chairman Asfandyar Farrukh added that the association remains ready to work jointly with the FBR through a structured technical review mechanism to refine reporting methodology, resolve connectivity issues and expand the tax base in a forward-looking manner.
“Organised retail is not the problem; it is a partner in Pakistan’s documentation journey. A collaborative approach, improved reporting methodology and stakeholder consultation will ensure that the national digitisation agenda is strengthened rather than clouded by misinterpreted data snapshots,” CAP said.
