Daily Times

Expressing concern over the slow progress in documenting the retail trade due to stagnation of both the FBR-POS integration of tier-1 businesses and Tajir Dosd drive to register small traders, the retailers have said that this slow progress is primarily due to lack of sustained consultation with the private sector, inconsistent policies and increasingly complex procedures. So, a clear five-year roadmap is the need of the hour instead of ad-hoc measures, they added. They said that the share of digital payments can be gradually brought up to 50% of the retail trade’s contribution to the annual GDP, estimated to be upwards of Rs12 trillion. Currently, an estimated 90% of the retail trade is undocumented and undertaxed. Whereas, based on a reduced GST rate of 5% on only Rs2 trillion, Rs100 billion can be generated in indirect taxes and an additional sum in direct taxes, which is more than is currently collected.

In a bid to expedite tax reforms whilst ensuring a more conducive environment for compliant businesses, the Chainstore Association of Pakistan has urged the authorities to prioritize an accelerated adoption of digital payments in the retail sector to improve documentation and tax generation. It highlighted the potential benefits of embracing digital payments, including enhanced transparency, reduced cash handling costs/risks, and simplified tax compliance.