ISLAMABAD – Authorties in Pakistan are rolling out sweeping regulations that will bring sales tax–registered businesses under 24-7 digital surveillance, all under conditions agreed with IMF.
As per latest measures, every Point of Sale (POS) machine must be linked directly into FBR system. Shops and outlets need to install CCTV cameras, link debit, credit card machines to FBR network, and even connect their online sales platforms from websites to mobile apps for real-time monitoring.
No sale will be hidden while all invoices must carry QR code, digital signature, and unique FBR number. Even a power outage will not be an excuse as offline invoices must be uploaded within 24 hours.
The rules go further as six years of sales data must be stored, tax officers will have full access to business premises and records, and an “enforcement network” will hunt down non-compliance. Any tampering with the system could mean heavy fines and bans.
On the other hand, Federal Board of Revenue (FBR) must get approval from two business community representatives before investigating or arresting anyone for sales tax fraud. This new rule, part of a government-business agreement, could slow down enforcement and make arrests nearly impossible.
Amid political pressure, the change limits FBR’s ability to act swiftly despite a tough Rs389 billion tax recovery target. Critics warn this could weaken efforts to combat tax evasion, while supporters call it a safeguard for due process.
