FBR Chairman Amjed Zubair Tiwana announced on Friday that businesses refusing to accept credit or debit card payments will face strict penalties, including the sealing of their premises.
The announcement was made during a review of the Finance Bill 2024 by the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwala.
Chairman Tiwana explained that the sealing of business premises would be triggered by three daily complaints or five weekly complaints from customers regarding refusal to accept card payments.
In a related development, the FBR has mandated 1,680 Tier-1 retailers to integrate with its Point of Sale (POS) system by May 31st.
Senator Sherry Rehman highlighted consumer difficulties due to POS system failures, sharing instances where credit card payments were refused. She noted that in other countries like the UK, even small purchases can be made with credit cards. However, in Pakistan, retailers often claim their machines are down, especially for high-value transactions.
In response, the FBR chairman announced new measures to enhance POS system transparency in the upcoming budget. These measures include licensing POS software companies and integrating a third-party license system. Tiwana acknowledged vulnerabilities in previous POS software but assured that the new system would address these issues.
He also noted that shops failing to provide receipts for five POS transactions in a week would face a fine of Rs500,000. Additionally, retailers involved in tax fraud would be blacklisted, though they would retain the right to appeal to the chief commissioner.
Tiwana reassured the committee that efforts are underway to ensure retailers comply with the POS system and accept credit card payments, aiming to promote transparency and convenience for consumers.
