Federal Board of Revenue (FBR) is getting tough on businesses that refuse to accept credit and debit card payments. FBR chairman Amjed Zubair Tiwana warned that such businesses could face strict actions, including sealing of their premises.
Strict Measures for Non-Compliance:
The FBR has established a clear enforcement mechanism. Businesses will be penalized based on customer complaints: three daily complaints or five weekly complaints can trigger the sealing of their premises.
Addressing Point of Sale (POS) System Issues:
Senator Sherry Rehman raised concerns about unreliable POS systems, highlighting instances where card payments were declined even for small purchases. The FBR acknowledged these issues and outlined measures to improve POS system transparency in the new budget.
Enhancing Transparency and Security:
The new budget proposes licensing POS software companies and implementing a third-party licensing system. This aims to address vulnerabilities in previous POS software that were susceptible to fraud. The FBR chairman assured the public that the new system will enhance security.
Fines for Non-Issuing Receipts:
Businesses failing to provide receipts for five POS transactions within a week will face a fine of Rs. 500,000. This measure aims to encourage proper record-keeping and deter tax evasion.
Blacklisting for Tax Fraud:
The FBR also plans to blacklist retailers involved in tax fraud. However, these businesses will have the right to appeal to the chief commissioner.
Overall, the FBR’s actions aim to:
- Encourage wider acceptance of electronic payments.
- Improve the reliability and security of POS systems.
- Promote transparency in financial transactions.
- Deter tax evasion practices.
