Islamabad_(Mudassar Iqbal)_The Federal Board of Revenue (FBR) is set to crack down on large retailers who fail to issue certified electronic invoices or receipts to customers. Draft regulations propose a fine of Rs 500,000 for each non-compliant receipt, with consumers encouraged to report violations to tax authorities in exchange for a reward of Rs 5,000.
Initially, the FBR mandated the electronic integration of point-of-sale (POS) systems for all Tier-1 retailers in the textile and leather sectors to ensure accurate sales reporting and proper tax collection.
Retailers are required to install a software extension provided by the FBR on their systems, which enables real-time reporting of sales tax to the FBR’s server.
The FBR has identified four categories of Tier-1 retailers: national and international chain stores, retailers located in shopping malls, plazas, or centers; those with cumulative electricity bills exceeding 1.2 million rupees over the past 12 months; and wholesalers who also retail consumer goods.
In 2022, the FBR launched a POS invoicing prize scheme to encourage tax compliance and improve economic documentation. This scheme included monthly computerized drawings, awarding cash prizes to 10,000 lucky winners.
However, the FBR suspended the prize scheme in October 2022 after conducting 10 ballots.
