By Farooq Awan

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed reviving the point-of-sale (POS) lucky draw scheme in the federal budget FY2026-27, saying that the initiative could encourage documentation, improve invoice-based transactions, and support efforts to broaden the country’s tax base.

According to the FPCCI budget proposals document available with Wealth Pakistan, the business body stated that stronger incentives for consumers and retailers can improve compliance and increase the number of documented transactions in the economy.

The chamber noted that more than 30,000 POS systems are currently operational under the tax system, where real-time e-invoicing has already been made mandatory.

According to the document, FPCCI believes that the existing infrastructure can be utilized more effectively to encourage greater participation in documented economic activity.

The organization proposed restoring the lucky draw mechanism for POS-linked retailers to encourage consumers to obtain invoices at the time of purchase.

FPCCI stated that encouraging customers to request invoices can reduce the possibility of fake invoicing and improve transparency in retail transactions.

According to the proposals, increased invoice-based transactions can also help tax authorities strengthen documentation and improve visibility into business activities.

The chamber also proposed introducing tax credits for customers making purchases through POS-linked retailers.

According to the document, customers could claim these credits while filing their tax returns, creating a direct incentive for participation in documented transactions.

FPCCI maintained that such measures can encourage consumers to prefer businesses operating through documented channels and increase formal economic activity.

The organization stated that expanding documentation remains important for improving tax collection efficiency and reducing the burden on existing taxpayers.

According to the proposals, increasing participation in documented transactions could also help reduce dependence on a relatively narrow tax base by bringing a larger number of transactions into the formal system.

FPCCI noted that Pakistan’s tax system continues to face challenges relating to documentation and compliance, making broader participation in the formal economy increasingly important.

The chamber emphasized that leveraging existing digital infrastructure and real-time invoicing systems can support efforts to improve transparency and strengthen the tax ecosystem.

According to the document, initiatives aimed at expanding documentation and increasing compliance can contribute to stronger revenue generation and a more efficient tax system over the long term.

Credit: INP-WealthPk