ISLAMABAD: The Chainstore Association of Pakistan (CAP) has raised significant concerns over the ongoing technical difficulties and enforcement challenges faced by tier-1 retailers using the Federal Board of Revenue’s (FBR) Point of Sale (POS) system. CAP Chairman Asfandyar Farrukh has called for urgent intervention from FBR Chairman Rashid Mehmood Langrial, as persistent system failures are causing severe disruptions to retail operations and exposing businesses to substantial commercial risks.
Despite fully complying with the system’s requirements, retailers integrated with the FBR POS system are encountering frequent technical issues. These include forced disconnections due to profile expirations, failed invoice synchronization with the FBR portal, unexplained version changes, and inadequate communication regarding system updates. Furthermore, retailers are burdened with manual invoice reconciliation, lack of bulk download options, and outdated technical documentation, which has not been updated since 2019.
Retailers have also voiced frustration over excessive enforcement actions, including the sudden sealing of their stores due to unverifiable invoices—often the result of system failures, not negligence. Additionally, the requirement for additional tax deposits before filing sales tax returns, despite valid input tax adjustments, has intensified retailer frustration.
“Such demands must be rationalized to reduce undue pressure on compliant businesses. These actions are eroding retailer confidence and hindering the adoption of the POS system,” said CAP. The situation has been further aggravated by the introduction of SRO 69(I)/2025, which imposes unrealistic compliance requirements amidst ongoing system inefficiencies.
Patron-in-Chief Rana Tariq Mehboob has called for a review of the Sales Tax Rules 2006 in collaboration with the organized retail sector and has requested a meeting with FBR leadership to address these pressing issues and find a resolution.
