Tax Authority Mandates Electronic Tracking for Clinics
The Pakistan Medical Association has formally opposed the Federal Board of Revenue’s push to mandate Point of Sale integration for medical clinics across the country. According to the PMA, the tax authority’s directive amounts to bureaucratic overreach and threatens widespread closures of healthcare facilities if officials fail to withdraw the requirement.
Digital Invoicing and the Retail Sweep
The dispute centers on a recent FBR notification requiring a broad range of businesses and service providers to digitally link their operations with the tax authority’s system. The order mandates the installation of electronic invoicing hardware and software to capture real-time verifiable electronic invoices for all taxable supplies and services, with transaction records required to be retained for six years. While the rules target commercial sectors such as restaurants, hotels, beauty salons, gyms, and private educational institutions, they also sweep in medical service providers, including private clinics, diagnostic laboratories, and private hospitals.
Delegation Confronts FBR Chairman Langrial
In response to the mandate, a PMA delegation met with FBR Chairman Rashid Mahmood Langrial to voice the medical community’s objections. According to the PMA, the delegation argued that healthcare functions as an essential professional service rather than a commercial retail activity. The association asserted that treating doctors’ clinics as retail outlets through mandatory POS integration is legally unjustified and fundamentally undermines the medical profession.
Threat of Nationwide Facility Closures
Following the discussions, PMA Secretary General Dr Abdul Ghafoor Shoro issued a statement characterizing the tax authorities’ attitude as rigid. The medical fraternity warned that it would have no option except to shut down healthcare facilities nationwide and explore alternative professions if the FBR continues enforcing the POS system and ignored judicial decisions.
Standoff Over Widening the Tax Base
The confrontation highlights ongoing friction between Pakistan’s tax authorities and professional bodies over documentation efforts aimed at widening the tax base.