Govt extends Point-of-Sale system to AJK businesses to enhance tax transparency

POS system launched in Mirpur; aims to digitise transactions, minimize tax evasion, and modernize the taxation framework

The federal government has expanded the Point-of-Sale (POS) system to businesses in Azad Jammu and Kashmir (AJK), integrating them into Pakistan’s digital taxation network. 

The initiative, led by Pakistan Revenue Automation (Pvt) Ltd (PRAL) in collaboration with the Central Board of Revenue (CBR), AJK, aims to streamline tax collection, improve transparency, and curb tax evasion.

Officials confirmed that PRAL successfully launched the POS system at Khaadi and KFC in Mirpur, marking the beginning of a broader rollout in AJK. The move aligns with the government’s national agenda to digitize economic transactions and ensure real-time documentation of business activities.

The inauguration ceremonies were attended by senior government officials, PRAL representatives, and business leaders, including Most Senior Minister Col (R) Waqar Noor, Minister for Development Azhar Sadiq, Minister for Law Mian Waheed, and Chamber of Commerce representatives. PRAL’s key personnel, including General Manager-SD Abid Naeem and Head of Commercials Farheen Azhar, were also present.

During the events, speakers emphasised that the POS system is not just a technological upgrade but a transformative step in strengthening economic resilience and accountability. The system records transactions digitally, reducing manual errors and preventing revenue leakages.

The government’s broader vision for a digital economy includes expanding the POS network nationwide to create an inclusive and transparent financial ecosystem. PRAL, as a key player in revenue automation, has reiterated its commitment to supporting the government’s drive toward digital transformation.

Following the inauguration, stakeholders engaged in discussions on future initiatives to accelerate AJK’s digital integration, ensuring the region benefits from enhanced financial documentation and ease of business operations.

Why now?

The expansion of the Point-of-Sale (POS) system to Azad Jammu and Kashmir (AJK) was previously hindered by jurisdictional challenges, as AJK operates under its own Central Board of Revenue (CBR-AJK) rather than the Federal Board of Revenue (FBR). Unlike Pakistan’s provinces, AJK has a distinct tax administration under the AJK Interim Constitution Act, 1974, which grants it autonomy in fiscal matters.

This separation meant that FBR’s taxation policies, including the POS system, could not be directly enforced in AJK without a formal agreement between the two governments. Additionally, due to AJK’s unique status, integrating its businesses into Pakistan’s national taxation network required careful negotiations to maintain its independent governance framework.

To address these challenges, the federal government collaborated with CBR-AJK and Pakistan Revenue Automation Ltd (PRAL) to implement the POS system within AJK’s own legal structure. This approach ensures that tax collection remains under local jurisdiction while enabling businesses to document transactions digitally, improving tax transparency and reducing evasion.

Monitoring Desk
Monitoring Desk
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