New prize scheme to target retailers not registered with FBR

ISLAMABAD: The Federal Board of Revenue (FBR) is all set to introduce fundamental changes in the reward schemes on point-of-sale (POS)-integrated invoices. On all unverified invoices, FBR will give a reward of Rs 25,000 per invoice. However, there will be one prize per person per month.

The Chief Commissioner concerned will investigate and if the receipt of a retailer or restaurant is not found to be linked with the POS, the reward money will be given to the supplier.

“We are planning these changes under the digitization program and soon these changes will be introduced in the reward scheme,” confirmed top government sources while talking to media on Saturday.

Earlier, this reward scheme was introduced during the PTI regime, but then it was discontinued due to lack of desired results. Even in the federal capital, restaurants and hotels, despite collecting sales tax, did not provide POS integrated receipts and did not deposit the tax collected from customers to the national exchequer.

To discourage this practice, the FBR intends to offer rewards on the basis of reporting fake or raw receipts. FBR will develop an app that will have the facility to report fake or raw receipts.

The FBR is embarking on a digitization drive with the help of a consulting firm, McKenzie, and during its planning, it found that the POS prize scheme failed to make any difference in improving the tax system.

In the case of restaurants, the FBR will only implement the changes in the federal capital and the respective revenue authorities of the provincial governments may replicate this model.

However, for Tier-1 retailers, brand stores will be made to issue POS integrated receipts.