Islamabad traders warn of protests over mandatory POS system

Accuse FBR of targeting small traders through forced installation of POS devices and sealing of shops

Traders in the federal capital on Tuesday warned the government of large-scale protests, including road blockades and a possible nationwide shutdown, if it does not withdraw the policy, mandating the installation of Point of Sale (POS) devices, which they described as a 'black law'.

The warning came from the All Pakistan Traders Association and the Traders Action Committee Islamabad, which announced January 16 as the deadline for the government to reverse the policy. Trader leaders threatened to block major intersections in Islamabad and escalate their protest if their demands are ignored.

Addressing a protest rally, All Pakistan Traders Association President and Traders Action Committee Islamabad head Ajmal Baloch accused the Federal Board of Revenue (FBR) of targeting small traders through the forced installation of POS devices and the sealing of shops. He said traders would strongly resist any such action.

The rally, organised against the POS policy, marched from Aabpara Chowk towards the FBR offices. It was led by Ajmal Baloch and attended by a large number of traders and their representatives from Rawalpindi and Islamabad.

Heavy police deployment stopped the rally before it could reach the FBR offices. Following the blockade, traders staged a protest at the spot, where leaders of various trader organisations from the federal capital addressed the gathering.

Speaking on the occasion, Baloch called for legislation introducing the death penalty for corrupt. Citing an IMF report, he claimed that corruption amounting to Rs53 trillion occurs annually across the country, with the largest share attributed to the FBR.

He alleged that corrupt elements within the department had now turned their attention towards traders, creating what he described as a widespread bribery system linked to the installation of POS devices at small shops.

A day earlier, FBR Chairman Rashid Langrial assured traders that those unable to afford the POS system will be given relief and that no trader will be harassed. A delegation of traders led by Central Organisation of Traders Pakistan President Kashif Chaudhry met the FBR chairman on Monday. 

During the meeting, Chaudhry apprised the FBR chairman of the challenges faced by traders, including alleged harassment by tax officials and the difficulties small businesses are encountering due to the enforcement of the POS system.

He said that despite traders’ concerns, the implementation of the POS system began at local and international brands and chain stores. While such businesses generally have computerised systems, backup power, trained staff and administrative capacity to adopt the system, smaller businesses operating within these chains continue to face practical difficulties.

Chaudhry added that the enforcement of the POS system has significantly increased operational costs for smaller traders. He said that traders were facing excessive interference, penalties and shop sealings in the pretext of documentation, creating an atmosphere of fear and uncertainty.