FBR Plans Geo-Tagged Surveys to Enforce POS System on Retailers

The Federal Board of Revenue (FBR) is preparing to launch geo-tagged surveys in Karachi, Lahore, and Islamabad to identify businesses not fully integrated with Point of Sale (POS). The International Monetary Fund (IMF) has maintained its Rs. 50 billion indicative target and pressured the FBR to adopt enforcement actions without waiting for the 2025-26 budget. FBR officials revealed that on-ground teams equipped with vehicles will conduct surveys in large shopping malls and commercial zones to identify retailers and wholesalers who are either not using POS systems or are underreporting transactions. At present, FBR estimates that between 50,000 and 100,000 shops need to be brought onto the POS network. A penalty system is also being developed for any retailer issuing receipts outside the POS system. A similar mechanism has already been implemented in restaurants and hotels in Islamabad. Last week, Finance Minister Muhammad Aurangzeb stated that declared tax payments from traders had reached Rs. 413 billion this fiscal year, up from Rs. 187 billion the previous year. According to FBR, much of the declared figure involved adjustments rather than full payments. With the IMF recently revising Pakistan’s annual tax collection target down from Rs. 12,970 billion to Rs. 12,332 billion, and the FBR having collected Rs. 8.43 trillion during July-March, the tax authority is under pressure to step up enforcement and meet the revised target by June 30, 2025.