ISLAMABAD: The Federal Board of Revenue (FBR) is planning to impose heavy fines on big retailers, who are found to be involved in issuing non-certified electronic invoices/ receipts to consumers.
Sources informed that the FBR is drafting rules to propose imposition of fine on Tier-1 retailers who are not conducting correct reporting of sales tax to FBR’s electronic system.
The FBR has proposed to impose Rs 0.5 million fine per receipt while the department shall also give a reward of Rs 5,000 to consumers who will report non-certified electronic receipts to tax authorities, sources added.
9,130 big retailers integrated in POS system
Initially, the FBR had prescribed electronic integration of points of sales (POSs) of all Tier-1 retailers of textile, leather sectors to ensure correct reporting of sales by retailers and realization of due tax from them.
The retailers are bound to install a software extension provided by the FBR on their system, which ensures live reporting of sales tax to FBR’s server.
The FBR has specified four categories of Tier 1 retailers which include national or international chain of stores, retailers operating in shopping malls, plazas, or centers, retailers whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds twelve hundred thousand and a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods.
The FBR had launched the POS invoicing prize scheme in 2022 to promote tax compliance and documentation of the economy. The scheme involved conducting monthly computerised ballots and distributing cash prizes among 10,000 lucky winners.
The FBR had conducted 10 such ballots before suspending the prize scheme in October 2022.
Copyright Business Recorder, 2024
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