Pakistan’s Federal Board of Revenue (FBR) has decided to place all business transactions under monitoring in a bid to widen the tax net.
The board has issued a draft notification proposing further amendments to the Income Tax Rules.
According to details, the FBR believes that real-time monitoring of businesses will help boost tax revenue. The move is aimed at curbing tax evasion and further documenting the economy. Under the new framework, major business entities, retailers and service providers will come under stricter oversight.
The decision will also extend to doctors, lawyers, accountants, elite clubs in major cities, restaurants, hostels, guest houses and marriage halls.
Sales of goods and services without integration into the Point of Sale (POS) system and e-invoicing mechanism will no longer be permitted. The stated objective is to prevent tax evasion and expand the tax base.
Beauty parlours, slimming centres, massage clinics and hair transplant facilities will likewise fall within the monitoring regime. Prominent private medical practitioners and educational institutions will be required to integrate with the POS system. Dentists charging more than Rs500 in fees will also be subject to oversight, as will photographers, videographers and event managers charging above Rs50,000.
Courier and cargo services, foreign exchange dealers and companies, along with medical laboratories conducting X-rays, CT scans and MRI tests, will be monitored. Private schools, colleges and universities charging monthly fees exceeding Rs1,000 will also be included. Inter-city travel service providers are set to come under the FBR’s radar as part of the expanded regulatory net.
