In a major move aimed at preventing tax evasion and improving transparency, the Federal Board of Revenue (FBR) has decided to collect real-time data of all business transactions across multiple sectors of the economy.

A draft notification proposing further amendments to the Income Tax Rules 2002 has been issued, expanding the tax net and introducing stricter digital monitoring requirements.

Under the draft notification, all businesses will be linked to the FBR system through Point of Sales (POS) machines.

Every bill issued from a POS machine will automatically be transmitted to the FBR system, ensuring real-time reporting of sales and transactions. The move is designed to enhance documentation of the economy and reduce under-reporting of revenue.

Businesses connected to the tax system will be required to install POS machines as a basic compliance requirement.

Wide range of sectors under tax system

The proposed amendments significantly expand the scope of sectors that must integrate with the FBR’s digital tax monitoring system.

According to the notification, this will apply to:

Hotels and guest houses
Marriage halls and clubs
Inter-city transport services
Courier and cargo services

In addition, registration has been made mandatory for beauty parlors, slimming centers, massage centers, and beauty clinics.

Healthcare, medical services to be registered

The FBR has also extended the requirement to healthcare-related businesses.

Hair transplant clinics, private clinics, dental clinics, and plastic surgeons will be affected under the new rules. Laboratories, veterinarians, diagnostic centers, and X-ray centers will also have to connect to the system.

Private hospitals, private consultants, and other healthcare service providers will be required to register and integrate with the tax system.

Clubs, gyms, professional services

Health clubs, swimming pools, fitness clubs, and multi-purpose clubs will also be linked to the FBR system.

Prominent clubs such as Karachi Gymkhana, Royal Palm, Chenab Club, Islamabad Club, and Lahore Gymkhana will also be connected to the tax system under the proposed framework.

Chartered accountant firms and cost and management service providers have also been included in the expanded compliance net.

The FBR has further placed manufacturers-cum-retailers, wholesalers-cum-retailers, and importers-cum-retailers under the scope of the draft amendments.

Educational institutions are also included. Schools, colleges, training centers, and universities charging a monthly fee of Rs. 1,000 or more will be required to connect to the tax system.

Legal backing under Income Tax Act

The notification states that under Section 33 of the Income Tax Act, being connected to the tax system will become a basic condition for businesses falling within the specified categories.

Additionally, the FBR will be authorized to obtain one month’s worth of CCTV footage from businesses connected to its system, further strengthening monitoring and enforcement mechanisms.

The draft notification invites objections, suggestions, and recommendations from potentially affected businesses and individuals within one week.

The proposed amendments signal a significant push toward digitization, documentation of transactions, and broadening of the tax base as the government intensifies efforts to improve revenue collection and transparency across Pakistan’s economy.