The Federal Board of Revenue (FBR) is set to use geo-tagging technology to conduct surveys in three major cities. The initiative aims to identify retailers and wholesalers and connect them to Point of Sale (POS) systems. These surveys will focus on businesses in Karachi, Lahore, and Islamabad. The goal is to improve tax compliance and include more businesses in the tax network.
This move follows the failure of the Tajir Dost Scheme, which was unsuccessful in fully integrating retailers into the tax system. The new surveys will target shopping malls and businesses that use POS systems but do not always generate receipts through them. If successful, the pilot project will be expanded across the country.
The FBR aims to connect 50,000 to 100,000 shops to POS systems as part of efforts to meet the IMF’s Rs50 billion target for retailers. Currently, about 22,000 shops are linked to POS, with 11,000 shops connected directly. The FBR is also introducing penalties for businesses that issue receipts without using POS machines, hoping to encourage compliance.
In the past, similar systems implemented at restaurants and hotels in Islamabad have seen success. Despite the struggles with the Tajir Dost Scheme, the FBR continues to enforce measures to reach its target. The use of geo-tagging technology is part of a broader strategy to improve tax collection and create a more accurate database.