ISLAMABAD:
Pakistan has fulfilled another condition of the International Monetary Fund (IMF) by linking 12,861 major retailers — including large shopping centres, textile and leather businesses, and restaurants — to the Point of Sale (POS) system.
According to the Federal Board of Revenue (FBR), it is now mandatory for large retailers operating in Pakistan to connect with the FBR’s computerised system.
Officials say that, in line with the agreed conditions with the IMF, the process of documenting various sectors of the economy is ongoing.
As part of this effort, the FBR has accelerated the registration of Tier-1 retailers, including those in textiles, leather businesses, and restaurants.
So far, 12,861 large businesses or Tier-1 retailers have been connected to the POS system. The total number of branches for these retailers stands at 35,761, and there is a plan to register 40,000 Tier-1 retailers over the next two years.
Large retailers with an annual turnover or sales exceeding Rs500 million will be linked to the digital invoicing system by the end of the current fiscal year.
According to the FBR, the purpose of the POS system is to prevent tax evasion and increase revenue. Progress is also being made in real-time sales tax monitoring and electronic invoicing.
Currently, the number of Tier-1 retailers stands at 11,301, with 23,676 branches.
Around 1,000 large restaurants with 1,490 branches have been connected to the POS system. 560 Tier-1 retailers in the textile and leather sectors have also been registered so far.
Through the POS system, computerised sales data will be transmitted directly to the FBR. Violations may result in fines ranging from Rs500,000 to Rs3 million, or even business closure.
