FBR to Close Businesses and Restaurants for Declining Debit/Credit Card Payments
Today, the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwala, reviewed the Finance Bill 2024.
Malik Amjed Zubair Tiwana, Chairman of the Federal Board of Revenue (FBR), informed the committee that businesses refusing to accept credit or debit card payments could face severe actions, including the closure of their premises. This would be triggered by three daily complaints or five weekly complaints from customers.
Senator Sherry Rehman expressed concerns about consumer difficulties caused by Point of Sale (POS) system failures. She highlighted instances where credit card payments were declined, noting that in countries like the UK, even small purchases can be made with credit cards. In Pakistan, retailers often cite machine failures, especially for high-value transactions.
The Chairman of FBR mentioned new measures in the budget aimed at enhancing transparency in the POS system. This includes licensing POS software companies and implementing a third-party license system to prevent fraud issues observed with previous POS software.
He also stated that shops failing to provide receipts for five POS transactions in a week would be fined Rs. 500,000. Tiwana emphasized that retailers involved in tax evasion would be blacklisted, though they could appeal to the Chief Commissioner. Steps are being taken to ensure retailers comply with the POS system and accept credit card payments.
