The government has decided to enhance penalties by 300 per cent against individuals and businesses that will not integrate with the online tax system and has also decided to imposed Rs1 per invoice tax for Point of Sales (POS) users so that the state may improve its system and allocate funds for schemes.
As per details, the decision has been made to increase the penalties because the government failed to generate the desired results for the collection of tax during the first two months of the fiscal year through the integration of the POS with the Federal Board of Revenue (FBR) system.
According to a local media report, the finance ministry has proposed to increase maximum penalties from Rs1 million to Rs3 million against those persons and businesses that will not integrate their POS with the FBR’s online system
Further, FBR has explained that the Rs1 per sales tax invoice fee has been imposed to raise financing for giving away prizes and improving systems. This tax has been imposed under Section 76 of the Sales Tax Act, which allows the finance minister to levy any fee.
To appease critics, a prize scheme might be launched by the end of this month with a first prize of Rs1.5 million and second prize of Rs1 million.
Statistics suggest that by charging Rs1 FBR will be able to generate around Rs260 million in this fiscal year (FY22).
Through the integration, FBR will get access to POS and it will be able to check the under-invoicing of sales.