The Federal Board of Revenue (FBR) in Pakistan is gearing up to conduct geo-tagged surveys in Karachi, Lahore, and Islamabad to widen the country’s tax net. This initiative targets retailers and wholesalers who either lack a Point of Sale (POS) system or fail to report transactions accurately, spurred by demands from the International Monetary Fund (IMF) for stricter enforcement.
The IMF has set a Rs. 50 billion compliance goal and pressed the FBR to act swiftly, rather than delaying until the 2025-26 budget. To meet this, the FBR will deploy survey teams with vehicles to key commercial areas and large shopping centers. Officials estimate that 50,000 to 100,000 retail outlets are currently outside the POS framework, and these surveys aim to pinpoint and integrate them into the digital system.
The FBR is also crafting a penalty system to crack down on retailers issuing non-POS receipts. Similar measures have already been rolled out in Islamabad’s hotel and restaurant sector with success.
Finance Minister Muhammad Aurangzeb highlighted a sharp rise in trader-reported tax contributions, reaching Rs. 413 billion this fiscal year compared to Rs. 187 billion previously. However, the FBR noted that much of this reflects tax adjustments, not cash collections.
Facing an IMF-adjusted tax target of Rs. 12,332 billion (down from Rs. 12,970 billion), with Rs. 8.43 trillion collected from July to March, the FBR is under pressure to hit the revised goal by June 30, 2025.
This push aligns with a larger effort to formalize Pakistan’s retail sector, enhance transaction tracking, and shore up revenues amid tough economic conditions.
