FBR to Proceed after 17,000 Large retailers in latest documentation Push

ISLAMABAD: In a major tax documentation drive, the Federal Board of Revenue (FBR) has opted to go after approximately 17,000 significant retailers located in lavish shopping malls, retail chains and shops having 1,000 square feet dimensions across the nation to raise considering taxes.

The push for installation of automated’Point of Sale’ (POS) system at these sockets will soon be initiated after Dec 1 as part of government’s devotion to record sales of large retailers that are evading payment of taxes, which runs into billions.

“All large scale retailers are proposed to integrate with the machine,” he said.At this time, there are just 3,500 significant retailers enrolled through POS.

At these shops, computerised machines are installed linking the sales profits with FBR system to test on tax evasion.

https://www.dawn.com/news/1518523/fbr-to-go-after-17000-big-retailers-in-latest-documentation-drive

Under POS, large retailers will report their sales in real-time using FBR to make it certain that tax collected from customers at the cash counter is actually deposited with the authorities.”We have identified around 17,000 significant retailers that are brought under the POS,”

Member Policy Hamid Ateeq Sarwar informed Dawn, adding that FBR is waiting for voluntarily answers from such shops.He said in case they didn’t come under the machine, FBR is going to likely be left with no option except to enroll them forcefully.

He also hinted at the introduction of strict penalties for people who did avoid POS, together with the chance closing of stores.However, Sarwar clarified that major penalties will be released at the next six months, maybe with all the new budget for 2020-21.

These stores collect taxes from customers, but the same isn’t always deposited with FBR.The tax system has projected to make the installation of POS invoicing at almost 20,000 companies and sockets from June 2020.

FBR has already amended the sales tax principles by making registration together with the new system for all tier-1 retailers mandatory.Sarwar said that it’s mandatory for all huge shopping malls, brand sockets, chain shops etc to enroll their sales together with the new system effective from December 1, 2019. “We’ll take action against those people who don’t come under the machine,” he remarked.

“We have almost finalised the principles and also other necessary changes in taxes laws,” he continued.According to Sarwar, these changes will probably be introduced via a money bill in parliament or various other means.

But he clarified that no change will be made to the problem of CNIC requirement.The member said that FBR has already made a decision to shell out almost $80 million on the automation of all procedures from the tax system.

“We want to carry out digital surveillance to recognize evaders instead of raiding their companies,” he said.

Sarwar said that to encourage clients to seek out electronic receipts of the purchases at these sockets, FBR will develop with present schemes to be supplied through balloting. These can consist of compensation in sales tax payment by obeying a certain amount.

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