FBR Retail Sector POS System Issues Resolved

The Federal Tax Ombudsman (FTO) has ordered the Federal Board of Revenue (FBR) to stop sealing shops and resolve technical issues with the Point-of-Sale (POS) system for tier-I retailers, addressing complaints of repeated system failures and high integration costs.

The ruling was in response to a complaint by the Chainstore Association of Pakistan (CAP) regarding issues with the POS system, including lack of coordination between FBR and Pakistan Revenue Automation Limited (PRAL). The FTO emphasized that no retail outlets should be sealed until all technical issues are resolved and recommended that FBR work closely with CAP to address future POS-related glitches.

The FTO has instructed FBR to provide technical training to field officers, develop a forewarning system for retailers about POS disconnections and token expiry, and extend POS security tokens for at least five years with prior intimation to retailers. Additionally, the FTO has directed FBR to urgently address the lack of a bulk download feature in the POS system and resolve issues related to invoices failing to sync with FBR servers and "fake disconnect" errors.

The decision is expected to alleviate operational and financial burdens on thousands of Tier-I retailers who had integrated with the FBR's POS system but faced undue harassment due to technical and administrative shortcomings. The FTO's ruling is seen as a significant relief for the retail sector, which had been struggling with the implementation of the POS system.

The FBR has been directed to implement the FTO's instructions immediately, and the retail sector is hoping for a smooth and efficient implementation of the POS system. The FTO's decision is expected to improve the overall business environment and promote compliance with tax laws.