ISLAMABAD: The Federal Board of Revenue (FBR) has decided to crackdown on point-of-sale tax evasions, retail stores or chains without point-of-sale receipts will be sealed. The retail sector is currently paying 2 per cent of its share of taxes.
The board said that for the next fiscal year the tax target is Rs100 billion from the retail sector. The annual sales of retailers with a larger market share are up to Rs10,000 billion, sources told The Correspondent. The FBR also states that the retailers’ yearly income is up to 20 per cent of the GDP.
However, larger retail stores have only declared sales of Rs700 billion. Only Rs15 billion tax was collected from retailers in the last fiscal year.
Furthermore, in the next fiscal year Rs50 billion would be collected from retailers as sales tax. The FBR enforcement team will have the power to raid stores.
The goal is set to collect Rs50 billion in income tax from traders and install point-of-sale at all major stores, FBR said. Around 500,000 point-of-sale are targetted to be installed in larger retail stores. Data will be obtained from banks for installing point-of-sale.
Currently, 11,000 large stores are connected to the point-of-sale, the FBR said. Retailers will be bound to give point-of-sale slips generated to customers.
Rewards will be available on a monthly basis through the slip, the finance ministry said.