In a sweeping move aimed at strengthening tax compliance and expanding documentation of the economy, the Federal Board of Revenue (FBR) has ordered compulsory online monitoring and Point of Sale (POS) integration for more than 14 business sectors across the country.
The decision marks a significant expansion of the tax authority’s digital oversight system and signals tighter enforcement, particularly in major metropolitan areas. Officials say the initiative is part of a broader strategy to enhance transparency, improve revenue collection and reduce tax evasion in both service and retail segments.
Wide Range of Sectors Brought Under Digital Net
Under a newly issued notification, hospitality and event-related businesses have been directed to connect their sales systems directly with the FBR’s central database. The order applies to hotels, restaurants, guest houses, marriage halls, marquees and race clubs. However, establishments operating without air-conditioning have been granted exemption from the requirement.
Healthcare services have also been brought within the scope of the directive. Dentists, physiotherapists, plastic surgeons, hair transplant clinics, veterinary practitioners, medical laboratories and diagnostic centres offering X-ray, CT scan and MRI services are now required to adopt the POS system. Private hospitals must also comply, although facilities charging consultation fees below Rs500 per visit have been exempted.
Beauty, Fitness and Clubs Included
The documentation drive extends to beauty and wellness businesses, including beauty parlours, massage centres and pedicure service providers. These outlets will be required to digitally record and transmit transaction data to the tax authority in real time.
Similarly, recreational and membership-based facilities such as health clubs, gyms, swimming pools, gymkhanas, polo clubs — both civil and non-civil — and multipurpose clubs have been instructed to implement the POS framework. FBR officials have indicated that enforcement will be particularly stringent in major urban centres such as Lahore, Karachi and Islamabad.
Retail, Manufacturing and Education Sectors
Beyond service industries, the notification makes full digital integration mandatory for retailers, manufacturers and importers. Foreign exchange dealers and currency exchange companies are also required to install and connect POS systems with the FBR database.
Private schools, colleges and vocational training institutes fall within the order’s ambit as well. However, educational institutions charging monthly fees of up to Rs1,000 have been exempted from the new requirement.
Aim: Real-Time Reporting and Broader Tax Base
According to officials, the expanded POS regime is designed to ensure real-time reporting of sales and services, thereby limiting under-reporting and improving audit capabilities. By digitally capturing transactions at the point of sale, the FBR aims to bring a larger segment of the informal economy into the documented sector.
Tax authorities maintain that the initiative will not only increase transparency but also promote fair competition by ensuring that compliant businesses are not disadvantaged by those operating outside the tax net.
