ISLAMABAD:
Pakistan has fulfilled another condition of the International Monetary Fund (IMF) by linking 12,861 major retailers (including large shopping malls, textile and leather companies 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 to the FBR’s computerized system.
Officials say that in accordance with the conditions agreed with the IMF, the documentation process of various sectors of the economy is underway.
As part of this effort, the FBR has expedited registration of Tier 1 retailers, including those in textiles, leather companies and restaurants.
So far, 12,861 large enterprises or Tier 1 retailers have connected to the POS system. The total number of branches of these retailers stands at 35,761 and there is a plan to register 40,000 Tier 1 retailers in the next two years.
Large retailers with annual turnover or sales exceeding Rs 500 crore will be linked to the digital invoicing system by the end of the current fiscal year.
According to the FBR, the objective of the POS system is to prevent tax evasion and increase revenue. Progress is also being made in real-time monitoring of sales tax and electronic invoicing.
Currently, the number of first-level retailers amounts to 11,301, with 23,676 branches.
About 1,000 large restaurants with 1,490 branches have been connected to the POS system. So far, 560 top-tier retailers in the textile and leather sectors have also registered.
Through the POS system, the computerized sales data will be transmitted directly to the FBR. Violations can result in fines ranging from 500,000 to 3 million rupees, or even closure of the company.
