FBR resolving issues related to POS: official

KARACHI: Regional Tax Office Chief Commissioner Tariq Mustafa Khan has said that the lack of understanding about the Point of Sale (POS) system exists and efforts are underway to deal with this issue.

Speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI) Chief Commissioner RTO said that after integration with the POS, the traders and shopkeepers will be able to obtain refunds automatically and they will not be subjected to audits.

“The POS, which was currently for businesses falling under Tier-I, will gradually be installed all over the country with a view to save the economy from tax evasion,” Khan added.

Any shopkeeper who comes under the purview of seven conditions defined for Tier-I will have to fulfil the POS condition. “Shopkeepers must come out of fear as they will be fully protected in case of any illegal action. Our doors are always open and you can visit my office anytime for assistance without seeking an appointment,” he assured.

Khan advised the shopkeepers to submit written complaints in case they were being victimised, ill-treated or blackmailed by any officer of his department, saying that action will be taken by initiating investigation within 24 hours with a view to create a taxpayers’ friendly environment.

“Whoever has received notices pertaining to the POS, his business must be falling in any of the seven categories defined in Tier-I. We don’t want to close down your business. This system is purely for the benefit of businesspeople hence, a maximum number of people must become part of it,” he said.

The Chief Commissioner said that his department’s team will hold awareness sessions not only at the KCCI but also at the respective markets. “It is not only the responsibility of Muhammad Idrees to support and facilitate shopkeepers but ours as well,” he added.

Khan, while congratulating KCCI office bearers on assuming charge of Chamber’s affairs, appreciated all the efforts being made to highlight the problems pertaining to the POS and other taxation issues.

KCCI President Muhammad Idrees urged that to properly and effectively implement the POS system on Tier-I retailers, the field formation teams need to play a more proactive role while awareness has to be raised amongst shopkeepers who currently stand unguided and were reluctant to seek assistance mainly due to existing negative perception about the tax authorities.

“The past practices of field formation officers are discouraging shopkeepers to integrate with the Federal Board of Revenue (FBR) via POS which requires attention,” he added.

Idrees also pointed out that Gul Plaza was not an air conditioned mall but due to the inevitable requirement at the basement, some shopkeepers have installed air conditioners and similar was the case at some other malls as well hence, all such shops should not be held responsible for failing to comply with the POS condition as these cannot be treated under Tier-I.

KCCI president further argued that all laws being devised by the FBR including POS system, remain confined to the business community of Karachi only at initial phase whereas it appears that the rest of the country stands exempted.

He advised the Chief Commissioner to hold awareness sessions at KCCI for shopkeepers of markets and malls and these sessions must also be organised at relevant markets as well.

The taxpayers were being harassed by issuing notices for monitoring and audit of multiple tax years and were compelled to comply with these notices within a short period of merely 4 to 5 days.

In this regard, he proposed that field formations should be restricted from initiating proceedings of multiple years while an adequate time period has to be prescribed under the law which should be provided to the taxpayers for responding to a particular notice.

KCCI Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain, Special Committee for Small Traders Chairman Majeed Memon, GST/ SRB Subcommittee Chairman Shoaib Ahmed Faridi, Federal Taxation Subcommittee Chairman Hilal Ahmed Sheikh, KCCI managing committee members and others were also present at the meeting.

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