FBR to Target and Seal Businesses Refusing Card Payments

The Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwala, has conducted a thorough review of the Finance Bill 2024. The session held discussions on the new measures targeting businesses that refuse to accept credit or debit card payments.

Chairman of the Federal Board of Revenue (FBR), Malik Amjed Zubair Tiwana, briefed the committee on the government’s new policy to enforce compliance with Point of Sale (POS) systems. Businesses that fail to accept card payments will face severe penalties, including the possibility of being sealed. This action will be triggered by receiving three complaints in a day or five complaints within a week from customers.

Concerns Over POS System Failures

Senator Sherry Rehman expressed concerns over the frequent issues consumers face due to POS system failures. She highlighted instances where retailers refused to accept credit card payments, often citing machine malfunctions. She contrasted this with practices in countries like the UK, where even small transactions can be made using credit cards without issue. Rehman noted that in Pakistan, the problem is particularly pronounced for high-value purchases, where retailers often claim their POS systems are down.

New Measures to Enhance Transparency and Compliance

Chairman Tiwana explained that the new budget introduces measures to bring transparency to the POS system. This includes licensing POS software companies and integrating a third-party license system to ensure reliability and reduce fraud. He acknowledged that previous POS systems were vulnerable to manipulation and reassured the committee that the new system would mitigate these issues.

Furthermore, Tiwana announced that shops failing to provide receipts for five POS transactions in a week will face a substantial fine of Rs. 500,000. This move aims to ensure that all transactions are properly recorded and reported.

Penalties for Non-Compliance and Fraud

Tiwana also mentioned that retailers who engage in tax fraud would be blacklisted. However, these retailers will have the right to appeal to the Chief Commissioner. He assured the committee that the FBR is committed to ensuring retailers comply with the POS system and consistently accept credit card payments.

The committee’s review of the Finance Bill 2024 signals a strong stance against non-compliance and aims to improve transparency and consumer experience in financial transactions.

The new measures are part of a broader effort to modernize Pakistan’s financial infrastructure and bring it in line with international standards, promoting a more transparent and efficient business environment.

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