FBR to go after 17,000 big retailers in latest documentation drive – Newspaper

ISLAMABAD: In a major tax documentation campaign, the Federal Revenue Board (FBR) decided to pursue approximately 17,000 large retailers located in luxury shopping centers, retail chains and stores that are 1,000 square feet in size across the country to increase taxes due.

The impetus for the installation of the automated "point of sale" (POS) system at these points of sale will begin after December 1 as part of the government's commitment to document the sales of large retailers that are currently evading tax payments. , which amounts to billions.

FBR President Shabbar Zaidi took Twitter and announced that the tax agency will launch automated POS for all large retailers starting next month. "It is suggested that all large-scale retailers integrate with the system," he said.

The adoption of the system, according to the president, will help retailers a lot, since in such cases personal interaction with FBR will be minimized.

Currently, there are only 3,500 large retailers registered through POS. In these stores, computerized machines are installed that link sales revenue with the FBR system to verify tax evasion.

Under POS, large retailers will report their sales in real time with FBR to ensure that the taxes collected from consumers at the cash counter are actually deposited with the government.

"We have identified around 17,000 large retailers that will be included at the point of sale," said Hamid Ateeq Sarwar, a member of the Policy. Sunrise, adding that FBR is waiting for voluntary responses from these stores.

He said that if they did not enter the system, FBR will have no choice but to register them with force. He also hinted at the introduction of strict sanctions for those who avoided points of sale, with the possibility of closing stores.

But Sarwar clarified that significant sanctions will be introduced in the next six months, possibly with the new budget for 2020-21.

It is estimated that FBR will collect around Rs20 billion in taxes by bringing all these retailers to the network. These stores collect taxes from consumers, but the same is not always deposited with FBR.

The tax agency plans to install POS billing at almost 20,000 businesses and outlets by June 2020. FBR has already modified the sales tax rules by making the registration with the new system for all level retailers. 1 is mandatory.

Sarwar said it is mandatory that all major shopping centers, brand outlets, chain stores, etc. Register your sales with the new system as of December 1, 2019. "We will take action against those who are not under the system." remarked

On the issue of small retailers, the member said that FBR had already signed a memorandum of understanding with them in accepting their demands. "We have almost finalized the rules and other necessary changes in the tax laws," he continued.

According to Sarwar, these changes will be introduced through a money bill in parliament or by some other means. However, he clarified that no changes will be made to the subject of the CNIC requirement.

The member said that FBR has already decided to spend almost $ 80 million on the automation of all processes in the tax system. "We want to carry out digital surveillance to identify evaders instead of assaulting their businesses," he said.

Sarwar said that to encourage customers to look for electronic receipts for their purchases at these outlets, FBR will propose gift schemes that will be offered by vote. These will include compensation in the sales tax payment by reimbursing a certain amount.

Published on Dawn, November 24, 2019

Source: https://www.dawn.com/news/1518523/fbr-to-go-after-17000-big-retailers-in-latest-documentation-drive

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