The Federal Board of Revenue (FBR) has directed all registered businesses to integrate their systems with the tax authority within one week in a major move to broaden the tax net.
A formal notification has been issued making compliance within the stipulated timeframe mandatory.
According to the notification, all business units using Point of Sale (POS) machines will be linked with the FBR’s central system. The decision applies to hotels, guest houses, marriage halls and various clubs. Inter-city transport services, courier companies and cargo operators have also been made subject to the requirement.
Beauty parlours, slimming centres and beauty clinics have been directed to complete mandatory registration with the FBR. Similarly, hair transplant centres, private clinics, dental clinics and plastic surgeons will be brought under the new tax regime to ensure their income records remain connected with the central database.
The notification further states that laboratories, veterinary doctors, diagnostic and X-ray centres, private hospitals, private consultants and other healthcare service providers would also be fall within the ambit of the directive. Health clubs, swimming pools, fitness centres and multi-purpose clubs have likewise been made bound to integrate with the tax system.
According to the FBR, major and prominent clubs including Karachi Gymkhana, Royal Palm Golf and Country Club, Chenab Club, Islamabad Club and Lahore Gymkhana will also be integrated into the system. Chartered accountants’ firms and companies providing cost and management services have similarly been brought into the tax net.
The notification adds that educational institutions charging a monthly fee of Rs1,000 or more will also be required to connect with the FBR system. Under Section 33 of the Income Tax Ordinance, integration with the system has been declared a basic requirement, and the installation of POS machines has been made mandatory for the relevant businesses.