The number of retailers connected to the POS system has exceeded 17,000
Published 2 hours ago | By Nouman Shakeel
Efforts to bring large retail businesses into the tax net have led to the number of establishments connected to the FBR’s Point of Sale (POS) system reaching 17,337.
According to the FBR, 4,124 more large retailers became part of the POS system during the financial year 2025-26, increasing the total number by about 31%.
Through POS, the record of purchases made at shops and business centers reaches the FBR directly. This makes it difficult for businesses to understate their actual sales.
The scheme was launched in December 2019. The FBR also gets one rupee on every purchase receipt issued from POS, which, according to tax authorities, is spent on the welfare of officers.
According to the data, the FBR received Rs 871 million from POS receipts in the last financial year, which is about 17% more than the previous year. During the same period, Rs132 billion in tax was collected from POS-connected retailers.
According to officials, the POS network has also grown due to the new limit of withholding tax fixed under sections 236G and 236H of the Income Tax Ordinance. The FBR is currently focusing on including restaurants, textile and garment businesses in the system.
On the other hand, the new scheme introduced for small traders has raised questions about the digital documentation of the retail sector. Under this scheme, small traders are allowed to pay one percent tax on sales up to Rs200 million annually.
The situation is still different in the services sector. According to tax officials, doctors and other professionals avoid disclosing their actual income and transactions, due to which clinics and hospitals are facing difficulties in connecting to the electronic billing system.
The FBR maintains that the purpose of electronic billing is not to target any specific sector but to ensure uniform record of business transactions. According to officials, the inclusion of shopkeepers and restaurants in the system has led to a significant increase in tax collections.
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