LAHORE: The government has sought legal powers for Federal Board of Revenue (FBR) officers to immediately seal those business premises that resist real-time integration after threats of heavy penalties and disconnection of utility services could not change people’s mindset.
The FBR sought more punitive powers through the Supplementary Finance Bill 2021 after hardly 2,500 retailers linked over 15,000 machines – known as point of sales (POS) – with the tax system despite the aggressive tools that taxmen have in their hands. The supplementary bill will soon be introduced in parliament to impose around Rs400 billion in new taxes.
Against the existing provision of sealing business premises after the imposition of fourth penalty of Rs3 million, the FBR has asked for powers to immediately seal a shop, said sources in the revenue board.
Any official of the Inland Revenue Service will be authorised to seal business premises, according to the proposal.
The integration of POS with the FBR’s online system to know real-time sales of businesses is the biggest government initiative, therefore, there is a need to create a complete deterrence, said an official of the FBR while explaining the background of seeking new legal powers.
According to the existing law, if a person fails to integrate his business, he shall be liable to pay a fine of Rs500,000 on first default, which will increase to Rs1 million on second default after 15 days.
If the person still chooses to remain unplugged with the FBR’s system, he will have to pay a penalty of Rs2 million on third default after 15 more days and on fourth default, the penalty will increase to Rs3 million.
After the fourth default, his business premises will be sealed until the time he integrates his business.
The FBR also have powers to declare any person or class of persons to integrate their invoice-issuing machines with the FBR’s computerised system for real-time reporting of sales.
