Tariq Butt

The Federal Board of Revenue (FBR) of Pakistan has decided to install computerised machines at mega retail stores and shopping malls that will be linked with its system to avoid tax evasion worth billions of rupees.

The FBR is issuing new rules for bringing mega retailers outlets and shopping malls into registration through point of sale system. It also plans to come up with gift scheme for those customers through balloting who will get computerised receipts of purchases through installed machines. At the first stage, the FBR wants to establish its linkages at point of sale at giant retailers and shopping malls located in posh areas.

The FBR wishes to target a few thousand mega retailers at luxurious shopping malls. Keeping in view stalled economic activities, it has decided to move slowly on condition of Computerised National Identity Cards (CNIC) as in first stage only big retailers will be targeted by linking them at point of sale with the FBR system in order to maximize tax collection at retail stage.

“We have forwarded new rules for bringing mega retailer chains and shopping malls having covered area of 1,000 square yards to Ministry of Law for vetting. It will help conveying our message crystal clear that the FBR is not intended to enforce CNIC condition on small traders,” top FBR official said.

In the past all efforts made by the FBR failed to fetch the desired results so this time technology would be utilised to expand the narrowed tax base by bringing retailers into tax net. The official explained that the FBR could not handle millions of retailers so the new rules going to be issued shortly would give clear message to the giants