FBR tells businesses to accept debit & credit card payments
In an effort to enhance tax documentation and transaction tracking, the Federal Board of Revenue (FBR) has mandated debit and credit card payments for businesses, effectively phasing out cash transactions. Under the new regulations, all retailers must accept digital payment methods, including debit and credit cards. Additionally, registered retailers are required to maintain comprehensive records […]
In an effort to enhance tax documentation and transaction tracking, the Federal Board of Revenue (FBR) has mandated debit and credit card payments for businesses, effectively phasing out cash transactions.
Under the new regulations, all retailers must accept digital payment methods, including debit and credit cards. Additionally, registered retailers are required to maintain comprehensive records of all transactions, particularly those made via card payments. To further ensure transparency, businesses must also implement CCTV monitoring at point-of-sale (POS) terminals.
These measures will be enforced through the following phases:
Phase One: Tier-one retailers and large businesses must install POS machines integrated with the FBR’s computerized system.
Data Monitoring: POS transactions will be recorded daily, weekly, and monthly, with any modifications, cancellations, or amendments closely monitored.
Fraud Detection: The e-invoice software will automatically flag any fraudulent activity or discrepancies in a retailer’s system, alerting the FBR for further action.
Retailers must retain transaction records for up to one month and provide them to the relevant tax commissioner upon request. However, despite FBR’s continued efforts, many businesses remain unregistered in the POS system or continue issuing fake receipts to evade tax compliance.
