S.R.O. 428 (I)/2024 issued on Friday applies to private educational institutions, large and medium-sized retailers, slimming and fitness centres, beauty parlours, transporters, accountants, clinics, laboratories, gyms, swimming pools, marriage halls and other similar businesses.

In a bid to increase the tax base, the FBR has apparently targted medium-sized establishments while granting exemptions to small shop owners.

The order says that installation of POS will be mandatory for restaurants, hotels, motels, guest houses, marriage halls, marquees, clubs including race clubs. However, establishments “where the facility of air conditioning is not installed” will be exempted.

Similarly, transporters providing inter-city travel services will be required to install POS if they are operating a fleet of five or more air-conditioned vehicles.

The new law also applies to “service provided for personal care by beauty parlours, clinics and slimming clinics, massage centres, pedicure centres” but if the businesses are running without air-conditioning they will be exempt from the new measure.

All medical service providers who charge Rs500 or more per patients will install POS, including dentists, physiotherapists, plastic surgeons, hair implant surgeons, and veterinary doctors.

Without any exemption, the POS rule will apply to all the pathological laboratories, medical diagnostic laboratories including X-Rays, CT Scan, M.R. Imaging, courier services and cargo services.

Similarly, all the health clubs, gyms, physical fitness centres, swimming pools and multipurpose clubs such as Lahore gymkhana, Islamabad club, Chenab Club, Karachi gymkhana, Royal Palm Lahore, Polo club etc. operated by any civilian/ non-civilian administration will be required to set up POS.

Photographers, videographers and event managers who charge Rs50,000 per event will be required to bill their clients using POS.

Accountants includuing chartered accountants and cost and management accountants will also set up POS.

Private schools, colleges, universities, professional institutes/ vocational training centers charging a fee of Rs1,000 per child have been told to set up POS by July 1.

Next come on the list retailers including manufacturer cum-retailer, wholesaler-cum retailer, importer-cum-retailer or such other person who combines the activity of retail sale with another business activity. However, retailers with smaller than 1,000 square feet shops are exempt. Similarly, a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months does not exceeds Rs12,000 will be exempt.

The SRO also applies to money exchange companies.