A small fee quietly added to millions of retail transactions in Pakistan has sparked controversy. FBR implemented a Rs1 Point-of-Sale (PoS) fee in August 2021, collecting billions of rupees annually. Initially, the fee was announced to promote documentation and reward customers, but the prize scheme was abruptly discontinued.
Questions now surround the current use of these funds. FBR Chairman Amjed Zubair Tiwana confirmed the suspended prize scheme but offered no explanation regarding how the collected money is currently being used or if it undergoes any audits.
Concerns extend beyond transparency. Critics argue the fee’s legality is suspect. FBR reportedly included the charge in the modified invoice without proper parliamentary approval, potentially violating the Sales Tax Act. This lack of legal clarity adds to the worries surrounding the program.
FBR’s handling of the POS fee also casts a shadow over Finance Minister Muhammad Aurangzeb’s digitalization plans, which rely heavily on POS expansion. Critics warn that expanding the system without addressing the current fee’s problems could lead to future issues.
Despite the controversy, FBR chairman has defended the fee and announced its planned relaunch through nominated vendors, aiming to address past issues. However, the program’s future remains uncertain. FBR’s ability to salvage the initiative hinges on improved transparency and a clear resolution of the legal concerns.
Pakistan’s POS Fee: Billions Collected, Questions on Use and Legality Linger
