Retail establishments must install Point of Sale (POS) devices that can handle non-cash transactions in order to ease the transition to electronic payments.
The Pakistani government is considering imposing a ban on cash transactions at retail stores and dining establishments that exceed a predetermined threshold in a significant move to promote electronic payments and improve financial transparency.
The proposed policy, which is expected to be incorporated into the upcoming budget for 2023–2024, aims to promote the use of non–cash payment options like debit/credit cards, mobile payments, and other electronic means.
The Federal Board of Revenue (FBR), according to sources, is currently assessing the proposal’s viability and potential impact on increasing documentation. According to the plan, restaurants and retail stores would be prohibited from accepting cash transactions that exceeded a predetermined threshold, possibly set at Rs. 10,000 or Rs. 5,000.
Retail establishments must install Point of Sale (POS) devices that can handle non-cash transactions in order to ease the transition to electronic payments. To encourage the use of electronic payment systems by merchants, the government is also thinking about providing incentives.
To increase transparency and accountability in the retail industry, restrictions on cash transactions that exceed a certain threshold and the promotion of electronic payments are in place.
The measure aims to reduce tax evasion and stop illegal activities by making sure that all transactions are recorded and traceable. Furthermore, it is anticipated to encourage the use of banking services, improve financial inclusion, and deliver crucial data for decision-making.
The government of Pakistan has pledged to modernise payment systems and promote a more open economy by proposing a ban on cash transactions above a certain threshold in retail stores and eating places.
The Federal Board of Revenue (FBR) is a federal law enforcement organisation in Pakistan that handles tax-related investigations as well as wealth accumulation and money-laundering cases.
It is run by Inspectors-IR, who monitor tax evaders, calculate taxable incomes, and carry out specialised duties for FBR Headquarters. Additionally, FBR collects taxes from each and every person and company.
The main organisation in charge of collecting taxes in Pakistan is called the Federal Board of Revenue (FBR). Since its inception in 1924, the CBR has been a part of the Ministry of Finance’s Revenue Division. It became a separate ministry in 1960. Additional adjustments to streamline the organisation and its operations were made in 1974.