The Federal Board of Revenue (FBR) had been pushing for the mandatory implementation of the Point of Sale (POS) system to digitally record sales and improve tax documentation. However, many small shopkeepers and retailers raised concerns, stating that POS systems are expensive, technically complex, and difficult to manage for small-scale businesses.
Recent Statement by FBR Chairman
In late December, the Chairman of FBR addressed traders’ concerns and clarified that small businesses which are not capable of installing or operating POS systems will not be forced to do so for now. He emphasized that the goal of FBR is to broaden the tax base, not to create undue pressure on small traders.
Assurance Against Harassment
The FBR Chairman also gave a strong assurance that no small trader should be harassed in the name of POS enforcement. He warned that any tax official found pressuring or threatening traders over POS installation would face strict departmental action. This statement was aimed at rebuilding trust between traders and tax authorities.
Nature of the Relief
It is important to note that this relief is temporary in nature. So far, no official notification or SRO has been issued granting permanent exemption from the POS requirement. The current approach reflects policy flexibility until a more practical and affordable mechanism is developed.
Guidance for Small Traders
Small businesses have been advised to maintain basic sales and purchase records and avoid misinformation. While POS enforcement is relaxed for now, traders should remain compliant with existing tax laws to prevent future complications.
Future Policy Direction
FBR has indicated that it plans to introduce POS systems in a phased and cost-effective manner, possibly through low-cost digital solutions. Consultations with trader associations will continue to ensure that future tax reforms balance revenue needs with the survival of small businesses.
