In a move to enhance tax documentation and tracking, the Federal Board of Revenue (FBR) has issued a notification amending the Sales Tax Rules 2006, Express News reported on Thursday.
According to the new regulations, all retailers will be required to accept all forms of online transactions, including debit and credit card payments.
Under the new rules, registered retailers must maintain a record of all transactions, including those made through debit and credit cards, with the added measure of CCTV monitoring of point-of-sale (POS) transactions.
Furthermore, retailers will be mandated to connect their e-invoicing hardware and software systems to the FBR’s system for real-time tracking.
The revised regulations also stipulate that POS data will be recorded on a daily, weekly, and monthly basis, with any modifications, cancellations, or amendments to records being closely monitored. In case of fraud or discrepancies in the retailer’s system, the e-invoice software will alert the FBR.
Retailers are required to retain transaction records for up to one month and provide them to the relevant tax commissioner upon request. Despite FBR's efforts to connect retailers to the POS system, many still either remain unconnected or provide fake receipts.
The FBR has introduced significant changes to ensure that retailers are linked to the tax system through the new Sales Tax Rules 2006.
This move is aimed at creating a transparent record of transactions between traders and consumers, ensuring taxes are appropriately collected.
Tax experts believe this step could help increase tax collection by fostering trust with traders, rather than relying on coercive tactics.
Haroon Sharif, former state minister and economist, commented on the new changes, stating that while technology can help document transactions, the FBR cannot force millions of traders into the system.
He emphasized that the government must work on building trust with traders and taxpayers, urging them to welcome such initiatives.
Ajmal Baloch, president of the All Pakistan Traders Association, echoed these sentiments, highlighting that traders lack trust in the FBR and often resort to using IT experts to create fake POS receipts.
He also suggested that the FBR consider introducing a fixed tax system, which he believes many traders would be more willing to accept.
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