In a bold move to strengthen tax enforcement and improve transparency in retail transactions, the Federal Board of Revenue (FBR) is set to launch geo-tagged surveys in Karachi, Lahore, and Islamabad to ensure proper implementation of the Point of Sale (POS) system.
🔍 What’s the Plan?
FBR’s enforcement strategy includes:
- 🚐 Deploying mobile teams with survey vehicles to visit major shopping malls and commercial zones.
- 📍 Using geo-tagging technology to identify businesses not using or underutilizing the POS system.
- 🧾 Monitoring and penalizing retailers who issue manual receipts outside the POS network.
Officials estimate that between 50,000 to 100,000 retailers still need to be brought under the POS regime.
⚠️ Why Now?
The push comes amid pressure from the International Monetary Fund (IMF), which has set a Rs. 50 billion enforcement target for POS compliance—and wants action before the 2025–26 budget.
FBR is no longer waiting for policy reforms—it’s going into active enforcement mode.
📈 Tax Collection Pressure Mounts
- 💸 This fiscal year, declared tax payments by traders rose to Rs. 413 billion, compared to Rs. 187 billion last year.
- However, FBR insiders note that a significant portion of this is adjusted tax, not fresh collections.
With the IMF revising Pakistan’s tax collection target from Rs. 12,970 billion to Rs. 12,332 billion, and Rs. 8.43 trillion collected so far (July–March), the FBR is under pressure to bridge the gap by June 30, 2025.
🧾 Expanding the Penalty System
A penalty mechanism is also being finalized for non-compliant retailers, similar to the one already rolled out for restaurants and hotels in Islamabad. This includes:
- Penalties for issuing receipts outside of FBR-integrated POS systems
- Random inspections to verify declared transactions
- Increased monitoring of high-footfall retail zones
🚀 What It Means for Retailers
If you’re a retailer operating in major commercial hubs, now is the time to:
- ✅ Integrate your POS system with the FBR network
- 🧾 Ensure accurate reporting of all transactions
- ⚠️ Avoid potential fines and disruptions during enforcement visits
📌 Final Thoughts
The FBR’s geo-tagged survey initiative represents a technological shift in tax enforcement—and a clear message that non-compliance won’t be tolerated in Pakistan’s evolving tax landscape. As the government looks to close fiscal gaps and meet IMF benchmarks, the retail sector is firmly in the spotlight.
