The regional tax office (RTO) Islamabad has shut down two well-known restaurants for issuing fraudulent receipts as part of the Federal Board of Revenue’s (FBR) efforts to improve tax compliance among Tier-1 retailers.
The closures took place after an RTO Islamabad team, led by the Deputy Commissioner, discovered the fake receipts using point of sale (POS) tracking software. Each restaurant was fined Rs500,000 for their infractions.
This enforcement action aligns with the launch of the POS prize scheme, which started on October 25 in Islamabad.
Under the initiative, citizens are encouraged to report fake receipts via the Tax Asaan app and can earn cash rewards. Verified reports will lead to penalties for the offending retailers, aiming to combat the practice of issuing false invoices.
The FBR has collected Rs647 million in fees from POS services since July 2023, with Rs309 million allocated for employee welfare initiatives.
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During a recent Senate Standing Committee on Finance meeting, Senator Mohsin Aziz inquired about the total amount collected by July 2024 through a Re1 fee per POS invoice and its subsequent utilisation.
The FBR clarified that this revenue, approved by the former finance minister, is earmarked for various purposes, including funding monthly price schemes for customers at Tier-I retailers, enhancing the technical and logistical capabilities of POS teams, media campaigns, and employee welfare for the IRS.
