FBR asks medical practitioners for online business transactions

KARACHI: The Federal Board of Revenue (FBR) has made it mandatory for some medical practitioners and consultants to connect with its real-time fiscal transaction system, sources said on Wednesday.

The FBR made it mandatory for doctors practicing medical consultancy in eight major cities of the country and who are charging above Rs1,500 as fee per patient to install electronic fiscal devices and provide data to the revenue authority on real time basis, according to the sources.

A senior official at Regional Tax Office, Karachi said tax laws have been amended to bring professionals into the tax net through electronic monitoring of their business activities.

The official said doctors are driving huge earnings on an annual basis but their contribution to income tax collection is nominal.

However, doctors or medical practitioners with consultation being provided at a place other than a hospital or clinic are exempted from the requirement.

The official said the FBR has taken several measures in the past to bring professionals into the tax net but due to loopholes in the taxation systems such professionals are evading the tax.

The medical practitioners and doctors have also been directed to issue invoices to patients.

“An effective monitoring system has been prepared to enforce the law,” the official said. “Third party information would be utilised to bring such doctors into the tax net.”

The official said whistle blowers would be engaged to identify the income of such doctors. “For the services of whistleblowers the FBR will give reward in cash.”

Besides, hospitals / medical care centers providing medical consultations, hospitalisation or other ancillary services have also been required to install the electronic fiscal devices.

Further, the condition of installation of fiscal devices is also mandatory for health clubs, gyms, physical fitness centres and body or sauna massage centres. However, exemptions have been granted in case such business activities are undertaken in the covered area of less than 1,000 square feet and at the facility with no air-conditioning.

Pathological laboratories, medical diagnostic laboratories including X-Ray, CT Scan, magnetic resonance Imaging are also required to provide their business activities on a real-time basis.

Under the Sales Tax Act, 1990, all retailers falling under category of tier-1 are also required to integrate their outlets with the FBR’s online system for monitoring of sales and purchases.

The tier-1 retailers include those operating as units of a national or international chain of stores, in an air-conditioned shopping mall, plaza or centre, excluding kiosks, whose cumulative electricity bill during the immediately preceding 12 consecutive months exceed Rs1.2 million or those engaged in bulk import and supply of consumer goods on wholesale basis to retailers and consumers. Besides, a retailer is also categorised as tier-1 if his shop measures 1,000 feet in area or more.