FBR to launch new POS scheme next week

ISLAMABAD: The Federal Board of Revenue (FBR) will launch a new Point of Sale (POS) Scheme next week under which prizes will be given to customers for submitting and providing fake invoices from retailers.

All those POS-connected retailers if proved involved in providing fake invoices, their outlets will be sealed. For opening up, they will have to pay a penalty of Rs0.5 million. The cash prize money will range between Rs10,000 to Rs20,000 for fake invoices on the bill exceeding Rs5,000 and above respectively.

The previous scheme in the shape of submission of invoices and then balloting for prize-winning has been abandoned with immediate effect. Now the customers will submit fake invoices on purchasing or paying bills less than Rs5000 if proved correct then he/she will be able to draw a prize of Rs10,000. If the fake bill is worth more than Rs5000 then the prize money will be standing at Rs20,000. In case of proving non-POS attached receipt, the retailer’s outlet/shop will be closed down. For opening up the retailers will have to pay a penalty of Rs0.5 million.

The FBR has developed an online application (App) for submission of fake invoices. This scheme will be launched for over 600 restaurants and other brands attached with POS machines located in Islamabad till November 30 in first phase and then this scheme will be replicated across the country with effect from December 1, 2024. Under the first phase, the POS machines installed at over 600 restaurants in Islamabad Capital Territory (ICT) in first 10 days and start operating from Monday (next week). Then the other POS connected shops of different brands will be attached in next 20 days till November 29, 2024.

Under the Sales Tax laws and rules, any person, who is integrated for monitoring, tracking, reporting or recording of sales, production and similar business transactions with the Board or its computerized system, conducts such transactions in a manner so as to avoid monitoring, tracking, reporting or recording of such transactions or issues an invoice which does not scan the prescribed invoice number or barcode (QR Code), such person shall pay a penalty of five hundred thousand rupees or two hundred percent of the amount of tax involved, whichever is higher. (Without prejudice to above, he shall also be liable]. Upon conviction by a special judge, to simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both. Notwithstanding above, the business premises of such person shall be liable to be sealed by an officer of Inland Revenue in the manner prescribed.