FBR Collected Rs. 647 Million as Point-of-Sale Fee Since July 2023

The Federal Board of Revenue (FBR) has collected Rs. 647 million under the head of point-of-sales (POS) services fee from the public since July 2023 and utilized Rs. 309 million for FBR’s employee welfare.  During the meeting of Senate Standing Committee on Finance held on Wednesday, Senator Mohsin Aziz initiated a query regarding the amount collected by the FBR up to July 2024 through a Rs. 1 fee on each invoice related to point-of-sale (POS) services, along with details on its utilization.  The FBR informed the committee that the former finance minister approved the use of this revenue for funding the monthly price scheme for customers at integrated Tier-I retailers, enhancing the capacity of POS-related technical and logistical teams, media campaigns, and employee welfare for the IRS. The total POS fee collected amounted to Rs. 647,319,302, with Rs. 309,337,000 utilized primarily for employee welfare.  The committee also examined the legal basis for provinces imposing taxes on exports. It was clarified that provinces have the constitutional authority to levy an Infrastructure Development Cess on the transportation of goods for imports and exports.   However, to promote exports and facilitate the flow of foreign exchange, such duties and taxes are generally not imposed on exports. The Khyber Pakhtunkhwa province, which shares a border with Afghanistan and has substantial export activities, may see a negative impact on exports due to a proposed 2 percent Infrastructure Development Cess.   It was noted that Pakistan Customs is not currently collecting this cess; rather, banks are handling it on behalf of the provincial government. It was decided that MOF ll constitute a committee to finalize a recommendation for the committee to resolve this issue.