The Tax Ombudsman has ordered FBR to implement a strong monitoring and enforcement system that closes all gaps in the point of sale (POS) system.
The suggestions from FTO were made as part of an investigation after a complaint filed against FBR for carelessness and inefficiency at the point of sale.
A few postpaid tax transaction receipts that were not validated were mentioned by the complaint. Furthermore, although being a non-scheduled item under the 1977 Price Control Act, eatables were subject to tax in POS.
Not just the tax was being collected unlawfully. It was not also deposited into the government exchequer. The complaint felt that FBR’s primary duty was to close any gaps in tax collection.
Chief POS FBR, Chairman PRAL, Second Secretary IT, FBR, and the complaint were present during the hearing.
According to the officials of FBR, PRAL, and RTO, system upgrading is a continuous process that PRAL is already engaged in.
Field formations must be more watchful in order to enforce it, and Secretary POS stated that the FBR is unable to comment on the complainant’s claims about the postpaid vs. prepaid tax scheme since they are a matter of policy.
However, it has been noted that FBR was unable to instruct and inspire its field officers to adequately monitor and enforce the system when PRAL implemented a postpaid tax system.
FTO pointed out that FBR’s claim that a procedure for tier 1 stores had been created was nothing more than eyewash as no incidents of such regulations being enforced had been reported.
Simple system installation or distribution of flawed software was insufficient unless comprehensive and efficient monitoring and enforcement follow-up were put into place.
To read our blog on “FTO advises FBR to charge Pak Suzuki for late car deliveries,” click here.
