ISLAMABAD: Taxpayers, including those in 14 categories of business enterprises, are now required to comply with costly electronic integration of their invoicing systems with the Federal Board of Revenue (FBR), following the issuance of SRO 428(I)/2024. This integration must be completed by July 1, 2024.
The initial setup charges for commercial businesses amount to Rs 1,500,000, which includes a software license fee of Rs 1,000,000 and Rs 500,000 for testing and implementation of the payment gateway. Annual support and maintenance charges are either Rs 60 per invoice or Rs 3,500,000 per year, whichever is higher. These fees have been quoted by the sole license-holder to one of the businesses mandated to integrate under SRO 428(I)/2024.
Taxpayers have reported difficulties with the high costs, particularly at e-Sahulat centers. The fourteen categories of businesses required to integrate through POS systems include:
- Retailers, including manufacturer-cum-retailer, wholesaler-cum-retailer, importer-cum-retailer, and other combined activities.
- Foreign exchange dealers and exchange companies.
- Private educational institutions charging over Rs 1,000 per month.
- Medical service providers with fees exceeding Rs 500.
- Private hospitals and medical care centers.
- Air-conditioned restaurants.
- Hotels, motels, guest houses, marriage halls, marquees, and clubs.
- Health clubs, gyms, fitness centers, swimming pools, and multipurpose clubs.
- Inter-city travel services with air conditioning.
- Courier and cargo services.
- Air-conditioned beauty parlors, clinics, and massage centers.
- Pathological and medical diagnostic laboratories.
- Photographers, videographers, and event managers charging over Rs 50,000 per event.
- Chartered and cost management accountants.
The FBR granted the license for electronic invoicing integration to M/s Haball (Pvt) Ltd., which has led to concerns about the high service charges imposed by this sole licensee. Tax experts argue that the FBR should either ensure reasonable charges or bear the costs itself, as taxpayers already face significant tax burdens.
In conclusion, the mandatory integration poses a financial challenge for taxpayers, who question the additional costs imposed by the FBR’s regulations.
